Will my new car impress everyone? What monthly payment can I afford? With so many options which car is the right one for me? What is the best choice for me financially? Are any of these questions running through your head? If you are purchasing a car soon the answer is most likely yes. Studies show that people hate car shopping, and are afraid that they will choose the wrong vehicle. The biggest cause of this fear is often deciding whether to buy new or used. I don’t blame you….purchasing a car is a big investment regardless if its old or new! So how can you decide which to choose? I have broken the problem down into a classic pros and cons list. Let’s dive in.
Pros When Buying a New Car
* Reliability – Buying a new car over a used car has its benefits. The main one being reliability. It’s no secret that most of the time a new car has less mechanical issues than a used car.
* Prestige – Along with reliability you gain a sense of prestige. Let’s be honest, you’re not going to boast to your friends about a used car. Although if you buy a shiny new 2017, now you’re talking.
* APR & Incentives – It seems to be common knowledge that used cars are always a better option, financially right? Wrong. New cars usually offer incentives that can help you save thousands, as well as lower APR. You should do the math, but often the incentives and low APR of new cars can provide great deals!
Cons When Buying a New Car
* Depreciation – Sadly, when buying a new car over a used you’re going to get hit hard with depreciation. The average car depreciates 20-30 percent in the first 3 years of ownership. In other words, if you purchase a new Honda Civic for $25,000, in 3 years’ time that car will only sell for 18-20,000 dollars. Crazy right!
Pros When Buying a Used Car
* No Depreciation – Since depreciation is so expensive, buying a used car is the smarter financial option in most cases. When you choose to buy used you don’t have to be the person to take the depreciation hit. For some people avoiding the depreciation alone is enough to persuade them to buy used.
Cons When Buying a Used Car
* Maintenance time/cost – Used cars are likely to need repairs more often than new cars… DUH. That`s common sense, right? Wrong, surprisingly not everyone take repair time and cost into consideration when purchasing a vehicle.
What are you going to drive while your car is in the shop? Will you be able to cope with not having your car as often? These are great questions to ask yourself when purchasing a used car.
So…. New or Used?
Now it’s up to you. It’s ok to be anxious when shopping for a car, you’re not alone. Hopefully I have provided you with enough information to help you feel more confident about shopping for your next car. Ultimately buying new or used is up to you and what makes the most sense for you. If you have more questions, or need any help with car shopping let us know in the comment section below. You can also give one of our specialists a call at 1-800 – CAR – SHOW, they will be happy to assist you on your car shopping journey.
Written by Daniel Cunningham