The excitement of buying a car is typically accompanied by lots of stress. The process involves plenty of decision making, so it’s important to weigh all your options.
Before you start thinking about the type of vehicle you want to purchase, you need to decide whether to buy new or used. Your choice will determine the type of car you get and where you make your purchase.
However, making this decision is harder than it seems. To help you out, we’re going over the pros and cons of a new vs used car.
Pros and Cons of Buying New
Purchasing a vehicle fresh off the assembly line is very tempting. That’s why 17.27 million new automobiles were sold in the U.S. in 2018 alone.
While owning a new car comes with a number of perks, it isn’t the best move for everyone. You’ll need to consider some of the following pros and cons.
Peace of Mind
One of the biggest advantages of buying a new car is reliability. You’ll never have to wonder how the previous owner treated the vehicle.
Peace of mind that a car won’t break down is a great feeling. Plus, even if something does end up going wrong, the warranty will protect you.
Most dealerships offer perks like free oil changes and tune-ups for the first year. This ensures your new car will remain in tip-top shape.
Bells and Whistles
Automotive technology has revolutionized the driver experience and performance of vehicles. Buying a new car means you get to take advantage of the newest features available.
Safety technology that now comes standard on many cars and trucks includes automatic braking, stability control, and blind-spot monitoring. All these features help prevent accidents and keep you aware of what’s going on at all times.
You can also pick from many other bells and whistles such as touch screens, auto-dimming mirrors, and keyless entry. These features make driving more convenient and fun.
Better Fuel Efficiency
Lowering emissions is a crucial step in helping the future of our planet. Vehicle manufacturers are always finding new ways to make cars more fuel-efficient.
A new car is going to save you money at the pump compared to an old vehicle. This is good for your pocketbook and the environment.
Higher Cost
Unfortunately, it’s time for the cons, and the first one is the biggest. New cars cost more, and sometimes a lot more than used cars.
In addition to the sticker price, new vehicles are more expensive to insure. This is a result of the higher replacement cost.
The expense is something you need to seriously take into account. Making a purchase without considering your monthly budget can backfire in a hurry.
Depreciating Value
It’s easy to think that by purchasing a new car, you’ve made a smart investment. After all, you now own a vehicle with tremendous value, right? Not really.
Once you drive a new vehicle off the lot, it loses around 10% of its value. After that, it drops in value significantly for the first five years of ownership.
If you own a new car for one year and decide to sell it, you can expect to get up to $10,000 less than what you bought it for. Instead, it’s better to keep it for the long haul.
Pros and Cons of Buying Used
Buying a pre-owned vehicle sounds unattractive to many people. They want something that belongs to them and them alone.
However, there are some benefits you need to consider. Unfortunately, there are some disadvantages too. It all depends on your situation.
More Affordable
The top benefit of going with a pre-owned vehicle is the price tag. A used car will always be the more affordable option.
Interest rates on financing for a used car are typically higher, but don’t let this fool you. Because the loan is much smaller, you’ll end up paying less interest in the long run.
The great thing is that used car dealerships offer relatively new vehicles and models that are much older. This means you can find something that fits your budget perfectly.
Certified Pre-Owned Protection
If you’re scared of a used car having issues a month into owning it, going with a certified pre-owned vehicle can provide peace of mind.
This certification means a car has gone through a manufacturer inspection process to ensure its quality. It’s had all the necessary repairs performed as well.
Depreciation Has Already Occurred
When you purchase a used car, a majority of the depreciation has already happened. This means you’re not buying something that automatically starts losing value.
If you properly maintain a used car, you’ll be able to sell it down the road for close to what you bought it for. In fact, some used cars can even increase in value.
Now on to the cons.
Wear and Tear
When it comes to a used car, there’s one thing you can’t get around. It’s already sustained normal wear and tear.
Even if a car has a clean accident history and seems in good shape, you have no idea how the previous owner treated it. This means it’s more susceptible to engine issues than a new car.
Limited Style Options
Another disadvantage of buying used is you don’t have the freedom to get exactly what you want. Certain colors or features may not be available.
When you buy a new car, the dealership can add certain customizations. This isn’t the case with used vehicles. You’ll have to sacrifice style preferences for cost-savings.
However, if you take your time and shop around, you’re bound to find something that comes close to your desires.
Make the Right Decision Between a New vs Used Car
It’s important to remember that there’s no right or wrong answer when deciding between and new or used vehicle. The choice all depends on your preferences, financial situation, and vehicle requirements.
However, it always helps to educate yourself before a big purchase. Keep these new vs used car pros and cons in mind when browsing the dealership and get exactly what’s right for you.