Buying a New Car vs Used Car: Which Option Is More Worth It?

September 4th, 2019 by

Buying a New Car vs Used Car: Which Option Is More Worth It?

For many of us, it’s a delicate conundrum. Do we spend our hard-earned money on a used car or a brand new one straight off the lot? Which is worth more in the long run?

The new car vs used car debate has gone on for decades as people swear each is the best route. There are definitely pros and cons to each, and ultimately it’s your personal situation that determines which is the best.

Don’t worry about making the wrong decision when it comes to buying a new or used car. We’ll explain the benefits of both and let you choose the best options for your situation.

 

New Car vs Used Car Value

Money is one of the biggest issues people have with buying a new or used vehicle. New cars cost more than the same model that is used. You’re getting a brand new car with parts that are new, a warranty that covers issues and little worry of a breakdown.

Used cars run the gambit of prices based on the type, age, and condition. If you’re low on funds, but need a car, you can buy an old beat-up car for $500. It will last for a while, but odds are you’ll need repair work soon?

When it comes to value, a new car has the highest value initially, but it depreciates quickly. The moment you take it off the lot, the value goes down. Used cars start with a lower value, but retain more of that value over time.

When you go to resell the car later or trade it in, you’ll likely get more of an overall return for the used car because the new car value decreased considerably from when you bought it.

 

You Can’t Beat New Car Customization

Do you want the Bluetooth connection or automobile Wi-Fi? If you want to customize aspects of your care from the colour, rims and all the bells and whistles, then you’ll want a new car. You can buy it factory-direct with everything you want.

There are far more used cars by volume, but you’re stuck with what’s already in them unless you do aftermarket improvements. The 2002 Taurus you’re getting isn’t going to have a portable Wi-Fi, but it might have a CD player.

Odds are you’re not going to find everything you want in a used car, but given the volume and depending on your price range, and you might find most of what you want.

 

New Cars Limit Who You Buy From

If you’ve perused Craigslist or Facebook marketplace, you’ve likely seen countless people selling their cars. There are entire dealerships dedicated to used cars, and even many new car dealers have used ones on the lot.

New cars can only be bought from a dealer. The benefit is you know you’re getting it from someone trustworthy.

The guy from Craigslist might have a sweet truck for sale, but it might also be stolen or hiding major wear and tear you can’t see, and he won’t tell you. It could have been in a 4-car collision and had a lot of shoddy work done to make it look good.

When you buy a used car from a dealership, they might offer a car history report to show you it hasn’t been in any major accidents, so you have that option.

 

Are You About To Have a Breakdown?

If you keep a car in good shape by getting regular oil changes, driving it correctly and the occasional mechanic checkup, you can go several years without any problems. That doesn’t mean you’re not experiencing wear and tear.

Car repairs are expensive. You’re charged $60-$90 an hour in labour, plus the parts. The less time you’re at the mechanic, the better.

New cars are more expensive, but they’re also less likely to need any repair work.  The parts are all brand new, so the likelihood of failure is small. If there is a problem, then it’s likely covered by a warranty.

Some newer used cars might still have some warranty protection, but anything more than a couple of years old is sold as-is. It’s always a good idea to have a mechanic look over it, but they can’t see everything.

Your recently purchased car could need new brakes in a few months, or the alternator may go bad. The batter could be old and a million other small details that could cost you in the long run.

 

Car Loans for New and Used Cars

Unless you’re looking for a cheap car or have buckets of cash on hand, you’ll need a car loan. New cars have a higher risk for many lenders because they’re more expensive. They don’t care about the shape of the car, just that you can pay for it.

Since new cars depreciate in value quickly, they have more stringent loan requirements. You may need a higher down payment or receive a higher interest rate for a new car.

The opposite is true for used car financing. As their values tend to stabilize, the risk is lower. You can get better loans with a lower credit score for used cars. They’ll have better interest rates and lower down payment.

 

It’s Easier to Buy a New Car

While the loan for a new car is harder to get, actually buying it is easier. There’s not car history to go over, no worries about a title transfer and no need for a mechanical inspection.

Used cars require research not only into the make and model but the owners and history of the specific car. Most used car dealers have the titles for used cars. If you buy from a person, they might have lost the title, and you have to wait for a lost title inquiry.

You know the new car is flawless.

 

The Decision is Up to You

When it comes to buying a new car vs used car, there are many factors to consider. Car buying means thinking about money, the kind of car you want and many other details for both new and used cars.

Choose the one that best fits your situation and circumstances. For more information about purchasing new and used cars, please explore our site.