Should I Buy a New Car or Used?
New or Used: (Which Car Should I Buy)?
(Why buy new autos) instead of old ones? Here are some of the (benefits of buying a new car):
- It comes in perfect condition. Used cars come with wear and tear even if they’re been well taken care of. New vehicles come straight from the factory.
- New cars come with a warranty. When you buy new, the warranty on the engine and other parts of a car can protect you from major repairs for tens of thousands of miles after the initial purchase.
- You won’t face as many repairs and maintenance costs in the early years of ownership. While new cars come at a higher price, you save on repair costs compared to used vehicles, which could be due for auto shop work soon after your purchase.
- The technology and other features will be better than with older models. On-board computers and other technology has come a long way in just a few short years. Even if you buy a vehicle that’s five years old instead of a brand-new one, you’re taking a significant cut in the quality of technology in your vehicle.
While many buyers love the experience of driving a new car, there may also be advantages to buying used. Here are some (things to consider when buying a car) used:
- Used inventory comes at a lower cost. New cars lose at least 20 percent of their value when driven off of the lot. While that may not matter to buyers who plan to keep their vehicle for a long time, the lower price of used vehicles may be more affordable and attractive.
- Insurance and registration may also be less expensive. Used vehicles typically bring lower costs to insure and register the vehicle, since the retail value of the car is lower. This can increase your savings over the life of a vehicle.
- The vehicle’s value will depreciate more slowly. Because used vehicles retain their value better than a brand-new vehicle, you’ll have more equity built up in your vehicle when you’re ready to trade it in for a different car.
(Should I Finance a Car)?
Financing is a decision every buyer needs to make based on their personal finances, including the amount they’ve saved for a vehicle, the price of their new vehicle, and their comfort with making monthly payments on a new vehicle. With low interest rates currently offered for auto loans, the relatively low cost of financing is making it a more popular option for buyers as compared to paying for new cars out-of-pocket.
(Why buy new) when you’re financing? Great question. Many new vehicles are eligible for promotional financing offers that can save you a lot of money over the life of your loan repayment. Introductory periods of reduced interest rates, or even interest-free financing, may be available for the new vehicle you want to buy. Ask your dealership about these financing offers to see you can save even more on your vehicle purchase.
What are the First (Steps to Buying a Car)?
If you find a vehicle you love and you’re ready to sign on the dotted line, the first thing you need to do is let your dealer know which vehicle you intend to purchase. From there, you should let the dealer know if you’re interested in financing—and, if you can get pre-qualified for financing prior to starting your car search, that is often even better since it lets you know exactly how much you’re eligible to borrow.
If you’re trading in, you should also get an appraisal of your current vehicle’s trade-in value for your current vehicle. You will also need to come to the dealership with your state-issued ID, a checkbook, the title of your previous vehicle, and any other supporting documents the dealership requests.
Whether you buy new or used, make sure you choose a vehicle that meets your transportation needs, fits your budget, and makes you excited to get behind the wheel and drive.
