Buying a car is a big deal – it can be overwhelming trying to decide which car is right for you. Today’s market, and the many financial considerations that go into choosing whether to buy a new vehicle or one that has been used, makes it difficult to decipher which is the way to go.
Below you will find some pros and cons of new and used cars to help guide you in this process.
Buying a New Car
- You get the latest, most up-to-date technology and safety features.
- You have the ability to customize your car exactly how you want it.
- Because there are no prior owners or previous driver history, you know it’s reliable.
- New cars should require less maintenance.
- New cars are generally going to have a more expensive purchase price up front.
- You may also be quoted higher insurance costs because of new technology features and there being a greater chance of theft.
- Brand-new cars begin depreciating immediately and the value is automatically much lower than the sticker price you paid.
Buying a Used Car
- Used vehicles generally have a lower purchase price up front.
- You may also receive lower insurance costs because of the lower probability of theft, and less new technology.
- The value depreciates less after your purchase, as the car was already used when you bought it.
- You might have to spend more money on maintenance since the vehicle is older.
- You’ll have less opportunity for customization up front, and older cars will in turn have older features.
- You may not know who drove the car before you, which means you won’t necessarily know the vehicle’s history of issues, maintenance or care.
- Depending on what you’re looking for, it could take a while to search for and find the “perfect” used car.
Ultimately, when deciding to go with a new car or used car it’s important to look at your budget. Not just your upfront budget to pay for the car outright or to make as a downpayment for an auto loan, but the annual fees, maintenance, repairs, and fuel costs that will come with owning the vehicle over time. It’s important to look at the big picture when discussing your budget to buy a car. And, if you need help in this process, our team can work with you to set a budget or learn about auto loan options.