Pros and Cons of Buying a New Or Used Car

      New or Used? It’s the age old question. Deciding on whether to buy a new car or a used car is the very first decision a consumer makes when embarking on the car buying journey. Which one works for you will depend on your personal preference and financial situation. Its deciding what’s a value to you. Do you value status and the newest features or do you value a good deal more? In our humble opinion (and not biased whatsoever) buying a used car like one of these great used cars is by far the best idea, but in this blog we’ll discuss the benefits and pitfalls of both. Can you get an objective opinion from a used car dealer’s blog on buying new or used cars? We’re not sure but we’re going to try and find out!

Advantages of Buying a New Car

Hello!? It’s NEW! There’s nothing like a new car. It’s hot off the presses. It even smells new. It’s got all the newest gizmos and gadgets. It’s a status symbol. It screams success and stability.

Again, it’s NEW! The reliability of a new car can be an advantage. It is a new car with all new components. It doesn’t have the benefit of being road tested but it is likely covered by a fantastic manufacturer’s warranty. A new car is also protected by legislation like Lemon Laws.

It’s yours… New cars pretty much come made to order. Want a bare bones model with just the necessities to save a couple bucks? You can get it. Want every option? Something in between? No problem.

It’s easier… It’s easier to buy a new car. To buy a used car, you have to scour through classifieds to find what you want at the right price. You have to spend time going dealership to dealership and have the vehicle checked out prior to purchase. With a new car, you’re paying pretty much the same as everyone else and getting the same thing. Sure there’s discounts and dealer programs but there’s a retail price to gauge from. One brand new Altima has the same value as another with the same options. Two used Altimas can be the difference of 100,000 miles and who knows what else.

Advantages of Buying a Used Car

Choices? The choice to buy new or used may not even be a choice at all. If you don’t have good credit, a new car may not even be an option for you. And without excellent credit, you can cross off the no down payment and low interest rate in the “Pros” column…

And every well intentioned Uncle’s favorite advice… Depreciation… Depreciation is the most significant factor to weigh when deciding new or used. What’s depreciation? Depreciation is defined as “a reduction in the value of an asset with the passage of time.” To a new car buyer, depreciation means the vehicle you paid all that extra money for will lose value quickly and in the case of new cars that value loss is immediate. Trusted Choice has created an excellent infographic that clearly explains how new cars lose value. You can check it out here. You lose 11% of your new car’s value just driving off the lot. That’s 11%. Like eleven percent! The $20,000 you just spent to purchase that vehicle has just turned into $17,800 just by signing the papers and leaving the dealership. After one year, your car has depreciated 25% and is worth $15,000. After five years, your vehicle will have decreased in value by a whopping 63%. Your $20,000 investment is worth $8,000. There is no other investment that has worse returns. Any financial expert will tell you a new vehicle is the worst investment you can make. When you buy a used car, someone else took that depreciation hit and left your money in your pocket.

New or Used Car Quote

It's Used… How can being used be an advantage? Used cars are road tested. All of their parts and functions have been used and found to be in working condition, or else it wouldn’t still be on the road. While new cars are protected by manufacturers warranties and legislation like “Lemon Laws,” purchasing used will all but guarantee that you aren’t purchasing a vehicle with significant manufacturing complications.

Automotive Textile Fortification and Decontamination… or Air Freshener… With used cars, there’s no ridiculous add-ons. With new cars, you've agreed on a price and when you go to seal the deal and finally look at the invoice you see things like “Enamel Corrosion and Oxidation Impediment” for $800.00. What’s that? Rustproofing. Wouldn’t a new car already have been protected from rust? Of course it was.

Insurance Costs… Used cars cost less and so they cost less to insure. They are also less likely to be stolen helping to lower the cost to insure.

Better Options… When you buy used, the money saved can be used to upgrade your model. While the options aren’t custom like in a new car, you can afford to get more of them.

      The choice of buying a new or used car is decided entirely upon what a “value” is to you. Is it all about the cost? Or are you willing to pay more for the presumed life status a new car implies? Whichever you choose, considering all of your options and taking a little more time to weigh the costs and benefits will leave you more satisfied with your decision in the end.

Content By:The Used Car Store

1803 Brighton Place

Pittsburgh, PA 15212