There`s a romantic notion around driving a new car off the lot. Everyone has their dream car, and usually, it comes with that new car smell. But who says a dream car can`t be a used car? When you begin your car shopping experience, no doubt the question of buying a used vs new car is one of the first considerations. Buying a used car may not have the same feeling as buying a new car. But buying a used car has some real benefits—mostly financial. Keep reading to find out the pros and cons of used car vs new car.
They may not be as exciting as new cars. But buying a used car can save you money and you can still get features that are important to you.
Less Value Depreciation
Depreciation is the amount your asset`s value goes down over time, especially because of wear and tear.
Used cars depreciate much slower than new cars. So you can count on getting more of your money back if you ever choose to sell it.
Lower Insurance Rates
Because used cars are cheaper, and you take on less debt to purchase one, your car insurance rate will be lower.
It`s important to consider your monthly costs—insurance and car note—when purchasing a car. The last thing you want to do is take on more costs than you can comfortably afford.
Stress Less Over Wear and Tear
Nothing hurts like the first ding on a new car. With a used car, it doesn`t quite hurt so bad. Likely, someone has already experienced that first ding pain.
Get More for Your Buck
Finally, if you decide to buy a used car, you have more options. Luxury car brands are more accessible if you decide to buy used.
That all sounds good, but why do some people still decide to buy a new car?
New cars are attractive, flashy, and desirable. Used cars are more affordable. But buying a new car has its perks as well.
New Car Warranty
When you buy a new car, it’s usually covered under a dealership warranty for the first 36,000 miles or three years.
That means they`ll cover any mechanical issues that come up for free. If you buy a used car, you`re responsible for all the costs.
When you buy a new car, the value starts depreciating as soon as you drive it off the lot. Within the first three years of owning a new car, the value can depreciate up to 50%.
However, some car brands that are known for their durability and longevity hold their value better than other brands.
New Car Smell
There`s something special about a new car. If bragging rights are important to you, or if you just want to experience the feeling of driving a new car off the lot, then a new car may be worth all the extra costs to you.
Used Car vs New Car: Which Is Better?
There is no answer for whether a new car or a used car is the better option. It all depends on your financial situation and your personal preferences.
Whichever you decide, it`s important to do your research before buying.
Buy a Used Car With Confidence
Buying a used car can be scary because you`re never sure how the previous owner treated their car.
Decide confidently between a used car vs new car with our free VIN check. Get information about the car’s odometer, previous registrations, and hidden damage.