Which Choice Is Right for You?
It’s been reported that the average American will own a total of six cars throughout their lifetime. The cars we choose to drive throughout that time are not only a major financial decision, but often ties directly into our lifestyle choices. It is important to be honest with yourself from the outset regarding your car-buying budget, so you’re able to make the most financially sound decisions, while still getting a vehicle you want, complete with the features most important to you and your family. One of the best places to begin in terms of your car-buying budget is determining whether to buy a new car or a used vehicle. Keep reading to learn more about buying new vs. used cars.
Pros: Buying a New Car
Buying a new car is an excellent choice for consumers looking to obtain the latest and greatest features for their vehicle. This can include more advanced safety and technology features such as rearview cameras, forward collision prevention, obstacle detection, and more! New cars also offer better gas mileage, zero used drive miles, and are less likely to result in spending money on costly repairs in the first few years of ownership. Plus, consumers taking out auto loans may find that dealerships offer financing at a lower interest rate for new vehicles.
Cons: Buying a New Car
The most significant deterrent for buying a new car is the high cost. No matter the make or model of the car you’re looking at, when compared to the same used car, the price will always end up being higher. Plus, after paying that high price, a new car can end up losing 20% of its value in the first year of ownership. This near-immediate depreciation can become quite difficult for many car buyers to look past, leading some down the road towards used or certified pre-owned vehicles.
Pros: Buying a Used Car
One of the most obvious advantages of buying a used car over a new car is… You guessed it, price! When you buy a used car, it has already gone through depreciation, which means it is arguably a better investment since there’s no guaranteed risk of immediate lost value. So, while deprecation steers car buyers away from new vehicles it can actually draw them in toward used ones. Not to mention, oftentimes drivers can save on their car insurance premiums as those can tend to be lower than covering new, off-the-lot vehicles.
Cons: Buying a Used Car
While there is no guaranteed loss of value, purchasing a used car does run the risk of decreased reliability. This means used cars are more likely to break down within the first year of ownership and you could end up with costly repairs. Used cars can also come with an unknown past that negatively impacts current ownership including, flood damage, recalls, excessive wear and tear, and other issues. On a less serious note, buying a used car means you might not get the exact color or latest features you’ve had your eye on which can end in disappointment.
Consider All the Options
When choosing between a new and used car it is important to consider your budget and lifestyle goals. Both options have their fair share of pros and cons. Now it’s time to decide which one is right for you.
