If it’s time to replace your vehicle or buy your first car, you have two primary categories to shop under – new and used. There are pros and cons to each option.
Buying a new car costs a lot more money. Yet, new cars have the newest technology and features.
On the other hand, buying a used car can save you money and you can easily find something clean and reliable.
What’s the best option for you? If you’re not sure whether you should be shopping for new or used cars, we can help. Keep reading for a quick breakdown of the pros and cons of each category.
New Car Costs
New cars are shiny, clean, and incredibly appealing to the average buyer. However, you have to pay for these perks. The average new car payment is over $600 a month. And this doesn’t include fuel, insurance, or registration.
Furthermore, brand new vehicles lose 20% to 30% of their initial value by the end of the first year. In other words, you’re going to take a big financial hit if you ever try to sell the vehicle.
New Car Features
Many buyers are willing to incur these costs because of the perks that only a new car can provide. For these people, choosing between new or used cars is an easy answer.
Brand new cars come with the latest technology, luxury, and safety features. This makes driving the vehicle a pleasure, rather than just a means of getting from point A to point B.
Used Car Savings
When looking at new or used cars, you might be compelled by your budget to opt for a preowned vehicle. Used cars have already experienced the worst of their depreciation, which gives them a lower market value.
As a buyer, this gives you access to more models, features, and trim packages. Yes, the technology will be a few years old, but luxury is luxury. You’ll also find that your insurance and registration are more affordable.
Vehicle History
When buying a used car, you assume some level of risk. You don’t know the vehicle’s exact history. You don’t know how well it was maintained or how past owners treated it.
There are vehicle history reports that shed light on these issues, but they cannot account for things that were never reported. In the new car vs used car debate, this is one of the main reasons why people decide buying a new car is the way to go.
Fortunately, if you buy a used car and get stuck with a lemon, you’re not on your own. Find a lemon law attorney that specializes in these types of cases to help you make things right.
Are You Going to Look at New or Used Cars?
If you’re having trouble deciding between new or used cars, we hope this article helps point you in the right direction. Ultimately, it comes down to your budget and your priorities.
And if you’re looking for more car buying advice or consumer insight, we have more to offer. Before you go, take a look through the rest of our blog to find more articles that can help you make sound financial decisions.
