Buying a car is exciting! Going to the lot, looking at your options, and going on test drives are all part of the experience. You’ll also be faced with a lot of choices.
One choice you’ll need to make right off the bat is whether you want a new or used car. Weigh the pros and cons in order to determine the best choice for yourself.
Pros: New Car
- You will be covered by the manufacturer’s warranty, which will cover almost everything.
- You will be able to take advantage of the latest safety and convenience features, and most new cars come with at least some level of roadside assistance.
- There will be fewer repairs that need to be made to a new car and you do not need to worry about previous repairs and handling.
Cons: New Car
- It costs significantly more to purchase a new car than a used car.
- Insurance rates are usually much higher than used cars.
- The value of the car is lessened when it’s bought, locking you into long-term ownership. High-end cars with full features are especially prone to depreciation as soon as they’re driven off the lot.
Pros: Used Car
- These cars are cheaper and more easily affordable.
- Besides general insurance rates being lower, you can also expect lower theft and comprehensive insurance rates.
- You may be able to buy a more expensive, luxury model of a car for the same price as no-frills version brand new.
Cons: Used Car
- You may have to deal with higher maintenance costs because of the age of the car and prior wear and tear with the previous owner.
- Warranty coverage will not last as long and will most likely not be as robust.
- You may not be aware of the complete maintenance and repair history, making your ownership more difficult. You can get a report of the vehicle’s history, but it may not be 100% accurate.
Determine what you can afford with this finance quiz to help you make the choice between a used or new car. Having a price range will help you narrow down your options and make the right choice for you!
