Pros and Cons of Buying a New or Used Car

Brand New Cars in Stock

When it comes to buying a car, there are an infinite number of factors to consider. Everything from the type of car you want to the kinds of features you need to considerations like safety ratings and performance. One of the biggest factors to consider, however, is whether to buy a new or used car. Here is a breakdown of the pros and cons of buying a new versus used car.

New Cars:

PROS:

– You can be assured it’s never been in an accident
– Most new cars come with a factory warrantee that starts when you drive it off the lot. Some are even “maintenance free,” which means even basic maintenance like oil changes and tire rotations are included, which saves you money
– The newest cars come with the latest technology
– You can still get a discount on a new car by buying a previous year’s model
– New cars often offer the best financing options

CONS:

New cars have the greatest immediate depreciation
– New cars can actually have more problems than used cars and can be a hassle to get them fixed – particularly if the problem is sporadic
– Higher insurance premiums and you will most likely have to carry full coverage until you pay it off, which will often be a very long time with a new car
– New cars come with high price tags, which generally means financing over numerous years, which can lead to paying a huge amount of interest if you don’t qualify for 0% interest

Used Cars:

PROS:

– Low mileage used cars often have the least problems over brand new cars or high mileage used cars
– Many people can afford to buy used cars in cash, which means no finance charges
– Good used cars can often be paid off quickly and then used to gain quick equity through a car title loan
– Some used cars still have manufacturers warrantees in effect
– Used cars can be purchased at auto auctions or other places where you can get great discounts
– Used cars have lower price tags but can still have great interest rates for people with good credit

CONS:

– Used cars in good condition can have an overly inflated value
– Used cars may have been in an accident you don’t know about or have damage you can’t see, such as flooding
– What you save on the up front price, you may end up paying in maintenance
– If you want financing, you have to buy used cars from a dealership, which means additional dealership fees, even though you can get much better deals and about the same risk buying from a private sale

Regardless of whether you buy a new or used car, all purchases come with certain risks. Even with a far greater number of “lemon laws” in place, you can still get saddled with a car that has more issues than it is worth. There is a vast amount of information available online these days, however, so be sure and do plenty of research and get anything a car salesman tells you in writing, and you should do fine.

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