Buying a New Car Versus Buying a Used Car

There are many advantages and disadvantages to buying both new cars and used cars. The best way to decide which route to go when buying a car should be based on your present financial situation and your individual needs in a car. Take a look at the advantages and disadvantages of each explained below to help you better decide the best option for your next car.

Advantages of buying a new car

  • You get the full coverage manufacturer’s warranty.
  • It is safer since you know the car has no history of accidents or damage.
  • New cars have the highest fuel efficiency and the latest technology.
  • You can typically negotiate the price down with the salesperson at the dealership.

Disadvantages of buying a new car

  • You have to go through a dealership, so it is questionable whether or not you’re getting a good deal or ripped off.
  • The price is high, and therefore so are the taxes and insurance rates. 
  • Your car significantly depreciates right when you drive off the dealer’s lot.

Advantages of buying a used car

  • The price is lower, and so are your taxes and insurance rates.
  • Since the car is used, the car will not depreciate as much as a new car would under your ownership.
  • You can buy a better quality and/or more luxurious car (get more bang for your buck).
  • In today’s world, retrieving the car’s accident history report is at your fingertips with sites such as carfax.com and autocheck.com
  • Many dealerships sell certified pre-owned vehicles, so you can get all of the car facts through the dealership rather than researching yourself.

Disadvantages of buying a used car

  • Depending on the mileage, there is usually no manufacturer’s warranty to cover car issues.
  • Vehicle history reports only show the accidents that were reported on the car, so you can’t know its full history.
  • You have to compromise more on the visual/luxury aspects of the car due to the limited inventory of used cars.

Which factors are most important to you? Hopefully this list gives you some insight on whether buying a new or used car would be better for your next car shopping venture.

 

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