Pros and Cons of Buying A New Car and Buying A Used Car
Time to jump into the car buying market? That’s an exciting time unless you’re unsure about which is the better route, buying a new car or buying a used car.
Both avenues have their pros and cons, and both offer a variety of choices. The good news is there is no wrong decision. It’s what works for you.
However, it is important to understand the financial difference your choice makes over the next few years. How do you know which avenue is right for you? Let’s dive in.
New Car Buying Advantages
Owning a new car is always a thrill. You walk a little taller, take the long way home, and find reasons to drive your new vehicle. But there are also several other advantages that last long after the newness has worn off:
• A manufacturer’s warranty
• Few repairs during the first years of ownership
• Low repairs mean you focus more on car maintenance
• Dealer financing is often a lower interest rate
• New cars have the latest technology
• Better gas mileage with lower emissions
• Hybrid car buyers reduce the amount spent each month on transportation
• Easily hook up your phone and other gadgets to your vehicle
Now the Disadvantages of Buying A New Car
There are a couple disadvantages to new car ownership:
• A new car takes its biggest depreciation hit in the first 2-3 years of ownership. You’ll lose several thousand dollars as soon as you drive it off the lot.
• If you buy a car that is a brand new model, the manufacturer may switch engines or alter the design of the vehicle in later models. Another disadvantage is if the initial model and year has problems. Buying a used car allows you to avoid that problem.
If you don’t mind losing some money upfront, buying a new car is a fine way to go. Or, if you plan to own the vehicle until the wheels fall off, the money you lose initially becomes a break even point.
As for buying a brand new model, the best strategy is to do your research. Know the possible problems upfront so that you can prepare.
Advantages of Buying A Used Car
There are several strong advantages to buying a pre-owned vehicle. It’s the reason the used car market is so big.
• Choosing to buy a used car allows you to avoid paying for the upfront depreciation
• Depending on how long you own the vehicle, you may be able to sell the car for close to the amount your paid for it
• You can get great used car financing. Our Harrisonburg car dealership offers a wide variety of financing options at very competitive rates. Or, if you choose, you can get financing through your bank or credit union.
• Because you’re not losing money on the upfront depreciation, a 0% interest loan, normally reserved for new car buyers, may be right for you.
• Here at Joe Bowman, all of our pre-owned vehicles must pass a rigorous 75-point inspection before they can be listed for sale. Additionally, we back up our used cars with either a 30-day or 90-day warranty, depending on the mileage and year.
• Joe Bowman used car dealership has Carfax vehicles. This adds an extra layer of protection for the buyer.
Some Disadvantage of Used Car Buying
Perhaps one of the biggest perceived disadvantages of buying a used vehicle is that it may be less reliable. And, you may need to do more repairs on it.
While that is a possibility, it’s important to know that technology has greatly improved over the years. Cars, in general, have become more reliable, many not needing repairs until they hit the 100,000 mile mark or beyond.
That means you can buy a used three-year old vehicle, sell it when it’s five, and you may not have to do any major repairs.
Another disadvantage in your used car search is that you don’t control the color of the vehicle, history, or the mileage.
You’ll need to be more flexible about color choices, features, and mileage. Plus, you’ll need to be more patient in finding the car that’s right for you.
What Will It Be in Your New Car Search?
Whether you’re buying a new car or buying a used car, it really comes down to options. Can you afford the higher price tag of a new car? Or will a used car fit the bill.
Do your research. Take a close look at your finances. Then stop in to see us or shop online!