When buying your next vehicle is on the horizon for you, one of the most important and challenging decisions to make is whether to buy a new or used car.
One reason why choosing between a new car and a used car is so difficult for so many drivers is that there is no right answer to the question of whether to buy a new or used vehicle. There are advantages and disadvantages to both decisions.
Ultimately, whether you buy a new or used car should depend on many different factors—including your own lifestyle, driving habits, and personal priorities and preferences for the vehicle you drive. If you’re struggling to choose between buying a new or used car, keep reading to learn 3 tips that can help you make the right choice for you.
Consider Costs of Ownership
When it comes to choosing between a new and a used vehicle, the cost is a major consideration for most drivers. It is important to consider the costs of ownership as well as the original purchase price of a vehicle when buying a car—no matter if it is new or used—especially if you are a driver who is on a limited budget.
Obviously, used cars tend to cost less than brand-new cars. However, there are other major cost considerations that should factor into your decision on whether to buy a new or used car.
Another major cost to consider is value depreciation. In fact, the number-one largest expense of owning a car is value depreciation. New cars depreciate in value much more quickly than used cars. When you buy a used car, its value has already depreciated significantly—which is why used cars are more affordable than new cars—and will continue to decrease slowly over time. On the other hand, the value of a new car instantly depreciates by 20 to 30% of what you paid for it the moment you drive it off the dealership lot.
Maintenance and repair costs are also important considerations when deciding whether to buy a new or used car. A used car is much more likely to require more repairs and part replacements more quickly than a new car because it is a few years old and already has some amount of miles logged on it. This means that you would likely have to pay more in fees for repairs, part replacements, and general maintenance overtime for a used car than you would if you bought a new car.
Think About How Much Time You Can Spend Without Your Car
Most drivers rely on their car heavily and use it every day. If you buy a used car, your vehicle will likely have to spend more time—sometimes several days or even weeks—in the shop when it needs a repair, a part replacement, or even just general maintenance.
Parts for used cars tend to be more scarce and less readily available than parts for new cars. Your local car dealership service center or auto body shop might not have the part your used car needs in stock, which means they would then need to order it and wait for it to arrive—which causes your car to spend even more time in the shop. Also, since
used cars tend to need more maintenance and repairs than new cars, these vehicles have to visit an auto service center more frequently and can take longer to repair.
Many car insurance plans cover the costs of renting a car while your vehicle is in the shop—which eliminates the strain of being without a car for days or weeks on end. However, it is important to check with your insurance company whether or not—and in which specific circumstances—a rental car is covered under your plan.
Consider Your Credit Score
If you have a high credit score, you are in a better position to buy a new car than most drivers with significantly lower credit scores. With a high credit score, you will be able to buy a new car with a low down payment—or possibly even without any down payment at all.
You will also likely be eligible for exclusive cash rebates and lower interest rates if you have a high credit score and choose to finance a new car through an official car dealership.
If your credit score is fairly low, however, buying a used car might be in your best interest. Although financing a used car tends to require a higher down payment and higher interest rates than buying a new car, trying to finance a new car if you have a low credit score can be very challenging.
Contact any of our dealerships for more info!