Is a New Car Or Used Car Right For You?
October 19, 2022
October 19, 2022
There are a lot of factors to consider when it comes to car buying. One of the biggest decisions is deciding whether you should buy a brand-new car or a used car. While both options have their pros and cons, it can be difficult to figure out the best choice. In this blog post, we will discuss both the advantages and disadvantages of buying a new or used car, so that you can make an informed decision!
Advantages of buying a new car
Here are the benefits to consider when looking to purchase a new car.
Better financing offers
New Auto Manufacturers often have special incentives that can help you save money and they're worth considering if you're looking to get the best possible deal. Deals may exist on many makes and models, from 0% financing to enticing rebates, so there's sure to be something that fits your needs
It's a good idea to shop around and compare offers before making your final decision, as it will help you get the best deal possible.
They are covered by a warranty
A new car purchase will come with a warranty. Generally, if something goes wrong with a brand new vehicle, the manufacturer will pay for the repairs as long as you perform all of the scheduled maintenance. This is great peace of mind, as car repairs can be expensive. The length of the warranty is generally around three years or 36,000 miles and powertrain warranties are often up to 100,000 miles. Some manufacturers also offer an extended warranty which will cover your car for longer, giving you even more peace of mind.
You can choose the features and options that you want
You can get the perfect car for your needs and your budget when you buy a new car since you can choose the features and options that you want.
Make sure to test drive multiple vehicles. It will allow you to pick out the color, the interior, and all the other details that make your car unique. Even if you're not sure what all the options are, your dealer can help you figure out which ones are right for you.
Disadvantages of buying a new car
When looking to purchase a new car, here are some drawbacks to consider.
New cars lose value as soon as you drive them off the lot
Cars tend to depreciate fast and this is one of the biggest costs of owning a new vehicle. Most cars lose about 20% of their value in the first year, and by the end of five years, they can be worth less than half of their original purchase price.
Shortage of New Auto Inventory
Due to the corona virus there has been a shortage of computer chips for new vehicles. Experts predict this could last into 2024. Because of this shortage, depending on the make and model of the vehicle, you can expect to pay as much as $10,000 above MSRP.
Insurance rates are higher for new cars
Insurance rates for new cars can be quite high, especially if the car is a luxury model or has a lot of features that make it more expensive to repair. The main reason for this is new cars are often worth more than older cars, so they're more expensive to replace if they're totaled in an accident.
Expensive to buy
We all know that new cars are expensive. Even a basic model can cost tens of thousands of dollars, and luxury cars can easily be in the $60,000 range. There are many factors that go into new cars being expensive.
Advantages of buying a used car
Here are the benefits to consider when looking to purchase a used car.
They are cheaper than new cars
Buying a used car can be a great way to save money as used cars are less expensive than new ones. This is especially true if you're willing to buy a car that's a few years old. You can get the same car cheaper than it was a few years ago. It's a good idea to look at a certified pre-owned car. Many times, dealers will offer a warranty on these certified pre-owned cars.
While you may not get all the bells and whistles of a brand-new model, you can still find a great used car that meets your needs and fits your budget. Plus, many newer used cars come with features that weren't available just a few years ago because of advances in technology.
Used cars come with a lower depreciation rate
When it comes to car shopping, most people want a reliable car at an affordable price. But what if there was a way to get a great deal on a car that also holds its value? Depending on the make and model, used cars are a great way to get a good deal on a car that also holds its value. Used cars are often a more budget-friendly option because they've already experienced the biggest drop in value (depreciation).
You can save money on car insurance if you buy a used car.
If you're looking to save money on car insurance, buying a used car is a good option. Used cars are generally cheaper to insure than new cars since they're not worth as much. Of course, other factors affect your insurance rates, such as your driving record and the type of car you drive. But buying a used car is a good place to start if you're looking to keep your costs down.
Extended Warranties are offered on used cars.
Most Financial Institutions and dealerships offer extended warranties for used cars. These warranties are based on the year, make, model and mileage of the vehicle and can be pretty comprehensive in their coverage. Typically, these warranties can be less expensive through the Financial Institution and can be included in the overall financing.
Disadvantages of buying a used car
Here are the drawbacks to consider when looking to purchase a used car.
It may not have been properly maintained
Used cars can be a great deal, but they may not have been properly maintained. If you're looking at used cars, it’s a good idea to get a vehicle history report, which shows the history of maintenance and repairs. This will give you a better idea of what you're getting into. And if you're not mechanically inclined, it's a good idea to bring someone with you who is. They can help you spot any potential problems that you may not be able to see.
You'll likely need to spend more money on repairs and maintenance in the long run
Cars aren’t cheap to maintain and the longer the car has been on the road, the more likely it will need repairs in the future. Since most car repairs require special tools and equipment that many people don't have at home, they are best left to trained professionals who know how to properly diagnose and fix any problems.
When deciding between a new and used car, what you decide to do ultimately comes down to what is best for you and your budget. If you're looking for a vehicle that is more affordable and will hold its value over time, a used car may be the better option. However, if you're looking for a vehicle with more reliability and the latest technology, a new car may be a better choice. Whatever you decide, be sure to do your research and take your time to find the perfect car for you!
For more helpful tips and guides as well as access to Valley Strong's Auto Finder, visit https://www.valleystrong.com/auto-loans