Should I Buy A Buy a New or Used Car

Between the chip shortage issue for new cars and the increased demand for used cars, it might not be the cheapest time to replace your vehicle. But if your current car is wracking up maintenance costs or it just isn’t meeting your needs anymore, it might be worth it. Now that you’ve decided you’re in the market for a new car, the question is new or used? Here are some key factors to keep in mind while you’re considering your options.

Cost

A new car will cost more than a similar used car. Another way of looking at that is you might be able to afford a nicer model used car than you could afford in a new vehicle. If getting the most bang for your buck is your top concern, a used car is probably the best way to go.

Depreciation

You generally will pay more for a new car than a similar used car. You might have heard the saying, “A new car loses value as soon as you drive it off the lot.” This is because the greatest amount of depreciation happens at the beginning of a car’s lifespan. According to Car and Driver, some models of vehicles can lose 40% or more of their value in their first year.

Reliability

A new car doesn’t have the wear and tear that a used car might have. It has never been in an accident and all the parts are brand new. If you need repairs, they will likely be covered for free under the factory warranty for a certain number of years or miles. However, you can still get similar coverage on a used car. Many dealerships offer certified pre-owned vehicles. These vehicles have gone through a thorough inspection, had any necessary repairs made and come with a warranty.

Technology

Newer cars are likely to have better gas mileage and lower emissions. If you’re concerned about environmental impact, you’ll find more options for hybrid and electric vehicles in the new car market. Also, new cars usually come with more bells and whistles such as GPS and Bluetooth connection. They might also offer the latest safety features such as blind-spot monitoring and lane-keeping assist.

Rates

You’ll probably get offered better loan rates for a new vehicle. However, you’ll have to pay a higher rate for car insurance. This is because it’s more expensive to replace a new car versus an older car.

No matter if you decide that a new or used car is right for you, we can help you finance it with a low-rate auto loan.