Should I buy a new or used car?
When buying a car, it can be difficult to choose whether to buy new or used. Car buyers have vastly different goals and priorities in mind which is why there isn’t a clear or obvious answer for everyone. To help you decide, consider what matters most to you:
- Are you looking for the best possible value?
- Are you hoping to pick and choose options and paint color?
- Do you prefer a car that gives you peace of mind?
- What’s your budget?
So which choice is right for you? Let’s consider the case for each:
The case for buying new vs used cars
Case for Buying a New Car
- The car you want with the options you want–you can choose the exact car you want-from the exact options-to the coat of paint.
- Pride–you’ll likely feel a sense of pride in your new car ownership.
- Reduced maintenance–a new car won’t require maintenance for the first several thousand miles so at the most, you’re only looking at oil changes and tune-ups.
- Warranty coverage–manufacturers provide a factory warranty for at least 3 years to cover new vehicles.
- Peace of mind–your car won’t require service for quite some time and is likely to come with state-of-the-art features and technology.
- State lemon laws–offered in all 50 states, lemon laws only apply to new cars. If your new car is a lemon, you could receive a replacement vehicle or get your money back. Carfax has a free look-up service to help you determine if your new car was returned to the used-car market as a lemon.
- Roadside assistance–almost all new cars come with free roadside assistance while under warranty.
- Great financing rates–rates for new vehicles are great! Sometimes you can find 0% APR for 60 months or great cash back incentives.
- Strong resale values– newer vehicles that are only a few years old tend to hold great value because of their reliability as long as maintenance and manufacture service dates have been followed.
- Safety–new cars are typically considered safer than used because they come with the latest safety equipment and features. New cars tend to have better safety records too.
- Higher fuel efficiencies and lower emissions–new cars are usually more fuel efficient than older cars, even when compared to older versions of the same model.
Case for Buying a Used Car
- Buy more with less–buying used will stretch your dollar to give you more vehicle for less money.
- More vehicle choices–usually when you buy used you’re car options are limited a bit. Due to the economy and slowing sales, dealerships across the country have loads of inventory they need to move, many are larger vehicles like trucks and SUVs. You could take advantage of the increase in car options and deals available.
- Better reliability–usually when buying used you’re not expecting the car to be as reliable as a new car though you have some options to improve reliability. For instance, you can transfer the original factory warranty to a second owner. By buying a certified pre-owned car, you could potentially buy a late-model used with the original warranty and opt to add to the warranty.
- Like new–some say a new car is considered used the minute you sign the bill of sale. Many cars that are lightly used but in “like new” condition are available by authorized dealers who sale certified pre-owned cars.
- Lower depreciation rates–the value of a new car will drop within the first few years of ownership, which are on average, the heaviest depreciation years. Buying used helps buyers avoid a large chunk of the hidden costs of depreciation.
- Lower insurance rates–a good rule of thumb for assessing insurance rates is to remember a greater value equals a higher insurance rate. Used cars carry a lower value and consequently, a lower risk to insurance companies. Also, depending on the condition of your car, you might not be required to pay collision insurance.
As you can see, there are some compelling options in both cases. We at Perfection Honda hope this has helped bring you a step closer in your decision. We’re here to assist you and we welcome your questions or comments.
So which do you prefer, new or used?