It’s a choice that every car shopper has to make: do you buy new or go for a used car? There’s no wrong answer. New and used cars each have their pros and cons. Let’s compare new and used cars to see which type works best for you.
New cars have a lot going for them. There’s a reason car sales have increased steadily over the past few years – people love new cars.
When you buy a new car, you get the latest and greatest. You get the newest entertainment technology and safety gear, as well as the most advanced engine technology. Because of that, a new car might help you save on gas, update your Facebook status and avoid an accident.
New cars also give you peace of mind. Because no one else has owned the car, you know how it’s been maintained. New cars are also typically covered by manufacturer warranties for the first three years or so, meaning that if something does go wrong, the car company may pay for it.
Financing rates for new cars also tend to be lower than the financing rates on used car loans. That means that if you go for a new car and finance it, you may end up paying less interest than someone who buys a used car. New cars are also subject to discounts and incentives from the manufacturer, which can bring down their price.
That price is the major downside of a new car. New cars are not only more expensive than used cars, they also aren’t a great investment. Most new cars lose a big chunk of their value in the first year of ownership, which means that recouping that money when it’s time to sell the car will be nearly impossible for you.
As soon as a new car is purchased, it begins to lose value. Because used cars have already gone through that initial depreciation, they have lower prices. Used cars also lose their value at a steadier rate than new cars, which see a steep drop in the first year.
Used cars not only save you money, but they can also give you a proven product. By buying a car that’s a few years old, you’ll know what kind of issues owners of the car tend to face. Other people have already lived with the model of car and you’ll benefit from their experiences. While the exact used car you buy may not be exactly the same as others of the same model, depending on how the previous owner cared for it, you’ll still have a good idea of what kind of maintenance to expect, and what the highlights and shortcomings of the car are.
Because used cars have lower prices, you can get a little more for your money. You might not be able to afford a brand-new BMW, but a used one could fit your budget nicely. Features that would be out of reach on a new car, like navigation or a rear-seat entertainment system, can be attainable when you shop used cars.
What you don’t get when buying a used car is a lot of guarantees. A used car may be outside of its manufacturer warranty, so you’ll be on your own for any repair bills. You also don’t know how well previous owners maintained the car. You also might not be able to drive a used car for as long as a new one. With a used car, some of the car’s useful life has been used by someone else.