New VS Used Cars Pros and Cons
In 2022, Americans bought around 40.9 million used cars, and only bought 2.86 million new cars. This is a striking difference. Millions of Americans made a choice on which kind of car to buy, with many different factors contributing to their final decision.
The process of deciding what kind of car to buy can be stressful, as there are so many different options and price points on the market, it can be hard to know which to choose.
The first decision that many make when deciding what kind of car to get will most likely be to answer the question, “Should I get a new or used car?”
There are many pros and cons to each, a new car can be more high tech, but a used car could have a better price. When it comes to choosing the right car for you, there are many things to consider.
Read on to find a comprehensive list of pros and cons that you should take into consideration when buying a new or used vehicle.
The Pros of Buying a New Car
- Most Dealerships Offer a Good Warranty: A new car will have a warranty, as most dealerships want you to have a good first few months with the car. However, it is not normal for a new car to actually need the warranty, as it is brand new and most likely running just fine.
- Up to Date Features: A new car will be fresh off the market with all brand new features, such as supreme sound, cameras, brake assist and more. You don’t need all these things to have a good car, but if it’s important to you, that is definitely something to consider.
- The Possibility for Roadside Assistance: With a new car, there may be the offer of roadside assistance, although some used cars dealerships will provide this as well.
- Safety: With it being the newest model of a specific car, there is the fact that it has been tested to be the most up to date version of the vehicle.
- Selection: There is the largest selection of cars available to you if you buy a new car, essentially every model and make of the newest year is up for grabs.
- Lower Interest Rates: There is the possibility that the interest rates will be lower, as the car is newer and the overall loan amount will be at a higher amount.
The Cons of Buying a New Car
- Cost: New cars can be very expensive. With some newer models, depending on the make, can be anywhere from twenty thousand dollars to sixty thousand dollars. Naturally, this is a very important con for many people.
- Value Depreciates: We’ve all heard that cars “tank in value the minute you drive it off the lot,” and that is very true, especially for new cars.
- Higher Insurance Cost: The car is worth more, so the insurance needed to cover it would be higher than that of a new car.
The Pros of Buying a New Car
- Lower Price: As the car is no longer the newest model, the price will then be lower.
- Cheaper to Insure: As the car is cheaper, so will the insurance be, as the overall cost of the car means less liability for the insurance company.
- Warranty: Most used car dealerships will still offer a warranty, however, coverage might be different depending on where you go.
- Resale Value: The car itself loses value less quickly than a brand new car, causing the resale value to most likely be higher.
- Quicker Loan Payoff: As the loan is less than that of a new car, the time it takes to pay it off will be less than that of a new car.
The Cons of Buying a Used Car
- Higher Mileage: Used cars can have a higher mileage, but that doesn’t necessarily mean that this is a bad thing, it just means the car has been used a lot previously.
- Limited Selection: When it comes to used cars, you may not be able to get the model or make at the top of your list, as you are limited to what is available in your area or dealership.
- Consumer Protection: When you buy a used car, you most likely buy it as is. If you find something wrong with the car after purchasing it, that isn’t covered by warranty, you will have to fix it with your own money.
- Limited Choice: You may not get the color of your choice or have a car that has certain features that you may want.
- Higher Rates of Interest: Loan companies may have higher rates of interest as the car is used, and costs less and gets paid off quicker.
No matter which kind of car you choose, it is always important to be informed as a consumer. Ultimately, it’s about what is important to you. Does the color and model matter more? Then, maybe buying new is good for you. Does the price matter more? Then maybe you should buy a used vehicle.