When you’re shopping for a car, the first decision of many will be whether to buy new or used. There are unique advantages and disadvantages to either option. Knowing what those are will help you choose the right vehicle.
With the purchase of a new car, you’re getting the latest in automotive technology and safety features. Driver assistance features provide alerts to possible dangers near your vehicle, and there are added crash assist options that can stop your vehicle to prevent a collision.
New vehicles are more likely to have the color and trim level you desire. They come with factory warranties that give you peace of mind and have lower financing rates.
One of the greatest drawbacks to buying a new car is that it’s more expensive. As of January 2023, average new car prices are up 4.2%. You’ll also pay more in sales tax on a new vehicle while it depreciates faster.
For many drivers, buying a used car is a better option. They are usually cheaper, even when you find a certified pre-owned (CPO) vehicle. This may allow drivers that can’t afford a new luxury car the chance to own one for less.
While buying a used car is a smart solution for many people, the downside is that many features will be outdated on older models. Cars will naturally require more repairs and maintenance as they get older too. You will also need more time to check the interior, exterior, and under the hood to ensure it has no major issues before buying it.
With new and used cars, the right choice for you is what fits your situation. It helps to ask yourself a few questions before you fully get into your car search.
You should consider your budget and how much you’re willing to spend. For many people, the price of a used car is more appealing. However, you need to factor in the true cost of owning that car, including maintenance and repairs.
The next thing to think about is how that car will fit your lifestyle. If you have children, you will want something safe that comfortably fits your family. You may ultimately decide that having a new car is a better investment.
Payment options are another consideration for both new and used vehicles. Make sure you think about the overall price before negotiating payments. It may be a better fit to take a used vehicle at a higher percentage rate than to buy a new car.
Buying a new car or one that is new to you is a big decision for anyone. Before you start your search, consider what you need from your vehicle to decide whether to go for new or used. Your auto broker is a great place to start to weigh the pros and cons of each option.
