What’s Better? New or Used?

potential car buyer

Ever ask yourself whether it is best to get a new car or an older one?  I suppose that if you own a car you may have, it is a question that many of us pose, here are some of the pros and cons of going new vs. old.

Advantages of Buying Used:

  • Depreciation: When you buy a new car your car depreciates every mile and every month you own it.  The most dramatic depreciation happens almost immediately and in a few cases some cars depreciated more than 40 percent of their value within the first year of ownership. You will be able to buy a car that is great at a huge discount.  As stated above, some cars lose up to 40% of their value in the first year, most cars are driven between 15,000-20,000 miles a year. You can get a higher priced and a better vehicle if you purchase one that is a year old. More bang for your buck. So, it allows you to enjoy your used car more, you will not be obsessing over the first rock chip or accidental scratch to the rims.
  • Insurance Rates:  Insurance rates are less for used vehicles, similar to insurance rates are also affected.  Since used cars are usually less expensive than new ones the cost to insure them is also less.  Saving you additional money and allowing you the flexibility to make your dollar stretch even further.
  • Better Vehicle:  When you purchase a used vehicle vs. a new one you can get more for your hard earned money.  You will be able to get more features, more options and more gadgets for your dollar than if you bought a new car.  Since you are limited to what is available you may have to look around and do the work to find exactly what you are looking for, but like all things worthwhile, its worth the work and the wait.
  • Price:  If you were to do a side by side comparison between the price of a new vehicle and the same vehicle that is a year older, you will see that in some cases the differences externally are very few.  But the price you would pay for one vs the other is substantial.

Advantages of Buying New:

  • What you want:  Have you over looked at a car catalog?  Maybe you have, maybe you have not.  Imagine therefore that you at a restaurant and are hungry, you look the menu over and decide exactly what it is that you want.  It is the same when you buy a new car, you get these sales packages that show you every feature and additional options, like rims, exterior and interior colors, upgrades to your brakes, upgrades in wood, leather, carbon fiber you name it.
  • Maintenance:  When you buy a new car there might be anywhere between 0-1100 miles on it. That is it!  It has gone from the assembly line to the transport to the lot, that is all it has ever been driven.  A lot of new cars come with the need for little to no maintenance that is in addition to their regular scheduled ones that are usually free. When you buy a new car all types of warranties and services are thrown in to make the offer more attractive.
  • It is New:  When you buy a new car, it is similar to getting a puppy vs a dog.  With a dog you do not exactly know what to expect, you did not raise it, you were not there every step of the way.  With a used car, you do not know how the car was treated, maintained and care for not to mention driven.  You do not know if your car might suddenly stop working or why.  When you buy new you are the only one who has driven it, you are in charge of all of it and can insure that the car runs well into the future.
  • Safety:  Every few months there are safety features that are available and perhaps even standard that were not available or commercialized in later model cars.  For example, curtain airbags, stability control, blind spot monitoring systems, brake assist and more.  Some of these are available as add on’s when you purchase a new car, but for some added safety is always worth it.
  • Better for the Environment:  With each passing year, there are more and more advance in the field of lessening the carbon footprint that we may inadvertently leave behind. Newer cars are more fuel efficient and have hybrid options and with each new generation are becoming more and more powerful while remaining good for the environment.
  • Warranty:  A lot of new cars come with 100,000 mile warranty – that means that if something were to become a problem you would have no out of pocket costs, thus ultimately simultaneously giving you peace of mind, which onto itself if priceless.
  • Cool Features:  With new cars there are new gadgets and gizmos, most of these are also available as aftermarket parts, but for those of you who would rather not have to worry about it and have someone do it for you, new is a great way to go.
  • Financing:  You may get a better deal on financing if you get a new car as the value of the car is higher.  Ensure that the APR and your payments are what you need them to be as to fully enjoy your possible new car.