New vs Used: What Car Should I Buy?
Having a dependable vehicle is crucial, especially considering how much we depend on them on a daily basis to get to everywhere we need to go. Whether you need a minivan to get the kids to school, an economy model for the long commute to work, or a dependable car for your teen to take to college - having an affordable vehicle that you can rely on every day is so important to you and your family.
While there are a variety of different makes and models of vehicles to choose from, the first question you should really be asking yourself is what car should I buy? New or used? It is a good idea to weigh the pros and cons of buying new and used vehicles to see which one better suits your current lifestyle.
I Need a Dependable Vehicle Now - What Car Should I Buy?
Just like shoes and jeans – there is not one particular style, size, or price tag of vehicles that perfectly suites everyone – and that’s ok. Each family or individual has their own set of financial conditions and priorities to answer when the question about what car should I buy arises. The type of vehicle you need truly depends on your own unique situation and you should do what is most comfortable for you.
While owning a brand-new car that no one else has ever driven definitely seems like a fun thing to do, there are definitely some perks when buying a used vehicle that you may want to consider. Here are some of the pros and cons of each to help you decide which would be the best car buying scenario for you and your family.
New Vehicle Purchase - ProsBuying a new vehicle definitely has its advantages. The peace of mind that comes with owning a brand-new car is comforting, but there are also some downfalls as well.
- Incentives from the manufacturer includes rebates, no money down, and low interest rates for new car purchases.
- The manufacturer offers a great bumper-to-bumper warranty to cover any issues that occur with the vehicle for several years.
- New cars have all of the latest technology and gadgets – from an infotainment centers to the latest safety technology, and best gas mileage, too!
- Buying new is a great way to ensure that you get the exact car you want. You can custom pick the specific package trim, wheels, color, and more for your new car.
New Vehicle Purchase - Cons
- Depreciation is the largest con of new car ownership and it is true that the car loses value as soon as it is driven off the lot.
- New cars are cost more, so they are also much more expensive to insure than a used vehicle, so expect insurance rates to increase.
- A new car purchase involves paying taxes on the entire purchase price, in most states, which can be thousands of dollars.
- The new car smell that gets so much attention is actually caused by volatile organic compounds and ‘off-gassing’ from the newly manufactured vinyl and plastic interior surfaces. It’s actually a good idea to air out the vehicle so that the chemical smell disappears quickly.
Used Vehicle Purchase - Pros
Purchasing a used vehicle often nets a better price for buyers, but not knowing the history of the car may be an issue.
- There is no new sticker price tag shock when you choose to buy a pre-owned car and there are many great deals to be had on used vehicles.
- Since pre-owned vehicles are less expensive than new ones, you can purchase a nicer car than you otherwise could not afford. While a new BMW might not be in the budget, a used version may be quite affordable.
- Since most of a car’s value is lost during the first few years of ownership, pre-owned vehicles give you the chance to buy the car at a better price and it will depreciate more slowly in the coming years.
- Today, it is easier than ever to explore the history of a pre-owned vehicle from reputable companies like Carfax, that shows you the vehicle’s title history, maintenance records, as well as collision and repair info, so you will know exactly what you are getting in to with that particular vehicle.
Used Vehicle Purchase - Cons
- Maintaining a used car requires more time and money, as it may need more repairs and maintenance than a new vehicle.
- When you buy a used car, it typically requires a down payment on the purchase when you finance it, whereas new vehicles often offer incentives for no money down financing.
- The unknown mechanical history of a used vehicle could result in more issues that need attention, causing inconvenience and extra money.
- Most used cars are sold as is with no warranty. These “as-is” pre-owned vehicles leave you holding the bill if there are any issues and it also releases the seller of the vehicle from any liability if the vehicle fails.
Other Tips for Buying a New or Used Car
Here are some other tips to help you when buying a new or used car:
- When you choose to finance your new or used vehicle purchase through your credit union, it allows you to negotiate a better price. Since they are foregoing the risk of financing the vehicle, negotiating a better deal can save you some money.
- Have a mechanic check out a used car before you buy it, so that you can avoid purchasing a vehicle that will lead to costly repair work.
- Contact your insurance company and be prepared to add the new vehicle purchase to your policy or purchase a new insurance policy for the car.
- You may be tempted to take your old vehicle with you to the car dealership to trade in on the purchase of a new or used vehicle, but you would most likely make more money if you sold the vehicle on your own and used the money you earned as a down payment for your next car purchase.
A Little Help from the Vehicle Experts at Kelley Blue Book
If you are still asking yourself what car should I buy? The Kelley Blue Book is a great resource for those in the market to buy a new or used vehicle. The Kelley Blue Book is a trusted industry resource that shows the value of all of the vehicles manufactured based on their present condition.
It also includes a Cost of Ownership calculator that is designed show prospective owners what the average five-year costs of any vehicle would be…and that even includes depreciation. This is an excellent resource for those who are still asking the question “what car should I buy?” to give you a good idea of what to expect the cost of ownership to be for the new or used vehicle you are thinking about buying.
Rates, terms, and conditions are subject to change and may vary based on creditworthiness, qualifications, and collateral conditions. All loans subject to approval.
This article is intended to be a general resource only and is not intended to be nor does it constitute legal advice. Any recommendations are based on opinion only.