Buying a New Car Versus a Used Car
Buying a new car versus a used car has always been a question faced by car buyers. Both options have their own distinctive advantages and disadvantages to consider. The following looks into the pros and cons of buying a new vehicle, as well as buying used.
Pros and Cons of Buying New
Shopping for a new car gives you more choices. You can choose between multiple brands and a greater range of models and trim levels. You’ll also have more choices when it comes to vehicle features and options. If you don’t find anything on the lot, many dealers can source other lots for the vehicle you want or even order the vehicle straight from the factory with the features and options you want.
A new car on a dealership lot is as close to perfect as one can get. You won’t find any scuffs, scrapes, or flaws on the exterior. The drivetrain is also in perfect shape with as little wear and tear as possible. After all, it is a new car.
The Latest Gadgets
Want adaptive cruise control or a head-up display? New cars tend to be on the cutting edge when it comes to the latest in safety, convenience, comfort, and performance features. For instance, the 2021 INFINITI QX50 features Direct Adaptive Steering and available ProPILOT Assist – two features you’ll only find on the latest INFINITI vehicles.
Better Financing Options
Buying a new car opens the door to a host of financing advantages. These often include better interest rates and more favorable loan lengths. Automakers also include various incentives that can take thousands of dollars off the price of a new car.
Sadly, your new car will lose its value as soon as it leaves the dealership lot. By the end of your first year of ownership, your new car would have lost as much as 30 percent of its initial value.
Newer cars can come with some unexpected costs. For instance, you could end up paying higher insurance premiums due to your new car’s higher replacement value. Gap insurance is an extra expense that’s necessary if you’re financing your new car purchase.
Certain vehicle options may be just out of your reach if you’re on a strict budget. That holds true especially for luxury makes and models with desirable, but expensive features.
Pros and Cons of Buying Used
More Car for Your Money
Buying used lets you stretch your budget further. You can upgrade to a bigger vehicle with more interior space or a fancier vehicle with better features than what you’d find brand-new on the same budget.
Fewer Depreciation Worries
With used cars, the worst of the depreciation curve is already behind you. That means you won’t have to worry about losing too much money on your purchase. Used vehicles can even appreciate in value due to their desirability or scarcity, in many cases.
Buying used means having to make trade-offs to get the vehicle you want. You might find a low mileage vehicle, for instance, but it might not be in the right color or with the features you want.
As you’d expect, used vehicles have significantly more wear and tear than what you’d find on new vehicles. Buying used means keeping a vehicle’s mechanical and cosmetic flaws in mind.
New and Used Car-Buying Tips
- Check the reviews. Browse through the top car review websites and see what the experts and owners are saying about the vehicle you want.
- Check the book value. For used vehicles, look up the actual book value of the vehicle you want. For new vehicles, check the MSRP (manufacturer’s suggested retail price) and the dealer’s invoice price.
- Research repair costs. Determine how much you’ll spend to maintain and repair your vehicle each year. Parts availability and the complexity of the repair itself can affect those costs.
- Test drive it. Take a thorough test drive of the vehicle you want and see how it best fits your lifestyle.
- Don’t be afraid to haggle. Various discounts and incentives can help give you the upper hand when it comes to negotiating final new vehicle costs. You’ll also have more flexibility when buying used.