Buying a New or Used Car: Pros and Cons
Buying a new car is expensive, but requires less maintenance & comes with a warranty. Used vehicles are cheaper, but might require costly repairs.
More Driving Topics Select a Topic Types of Driver Licenses New Vs Used Cars Vehicle Financing Auto Insurance How to Organ Donation Checklist for Approaching Your Vehicle Why You Should Wear Your Seatbelt Return to Main Page Buying a car is exciting, whether itâs new or new-to-you. Either way, youâre going to be dropping a lot of money for something that will ideally last you for years and years. Itâs important to pick the ride thatâs right for your budget whether that budget is 10 thousand dollars or 20 thousand dollars. So whatâs the better deal when you're buying cars: new vs. used?
New Cars
Letâs start with the really fun option. Getting a brand new car would be amazing. That shiny, perfect paint, that pristine upholstery, the intoxicating plastic-y whiffs of ânew car smell.â Without a doubt, buying a new vehicle is a wonderful luxury for those who can afford it. True, the price tag at the dealer is going to be higher than a used carâs, but youâre paying for peace of mind and reliability. New cars usually come with warranties (ask the dealership about what the warranty covers and how long the warranty lasts) and probably wonât need any serious maintenance or major repairs for a while.
There are a few things to keep in mind with a new car. First is that the cost of insurance is higher for a new vehicle than it is for an older one. Next, make sure you understand your total cost if you're financing a vehicle or taking out a car loan because that's totally different than buying outright. And lastly, be aware that the value of a new car depreciates over 10% the minute you drive it off the lot. So if you're hoping to sell the car later, the resale value will be a lot less than what you paid for it when it was a brand new car. Most cars don't really hold their value, so don't necessarily think of a new car as investing in something that will garner a high return down the road.
When you're ready to throw down for a new car
Used Cars
Okay, so you never hear TV game show hosts yelling in excitement about someoneâs chance to âWIN A USED CAR!!!â But that doesnât mean you should rule out a pre-loved set of wheels. Theyâre usually way more affordable than new cars. What's your poison? Hondas? Mercedes? BMWs? Jeeps? You can find any of these brands used. Thereâs also a huge range of price points to choose from, whether youâre cool with a decade-old vehicle that gets the job done or a barely used car with a small number on the odometer. Whether youâre looking for something no-frills or top of the line, itâs always going to be cheaper if you get it pre-owned. Sure, you might not get that new car smell when you're buying used, but that's what air fresheners are for, right?
When youâre trying to save some money by buying used
Just remember to inspect used cars carefully before making your purchase. Even if the car has no obvious, serious flaws, itâs a good idea to request a vehicle history report. The report (connected to the VIN, or Vehicle Identification Number) will include information about past issues such as crashes the car was involved in, flood damage, etc. This can also alert you to any repairs that might need to be made on the used car so you can account for that in your end cost. Do your research, then enjoy your new(ish) car!
No one wants a lemon. Be careful with used cars.