Is it Better to Buy a New or Used Car?

Car dealer giving car key to buyer

 

If it’s time for you to trade in your current car for a better one, then the next step is obviously deciding what you’re going to be driving home in! But you might be wondering is it better to buy a new car or used car. While there isn’t a bad option no matter what choice you go with, there are a number of benefits that you need to consider between new vs. used cars for Grand Island drivers. Find out more about the difference between the two below, and then contact us to schedule a test drive today. 

New vs. Used Cars: Benefits and Drawbacks of Each

New Car Benefits

  • Updated Technology: When you buy or lease a brand-new car, you can anticipate a cabin full of modern technology. In-vehicle technology is rapidly advancing year by year, so a used vehicle that’s only a few years old might already be outdated in terms of its tech package.
  • Optimal Fuel-Efficiency: In order to compete in today’s auto market, a vehicle has to deliver competitive fuel economy numbers. Even trucks and SUVs are held to higher standards, leading to a decrease in V6 and V8 engines and an increase in turbocharged motors that are both fuel-efficient and powerful. In general, if you want the best available mpg ratings, you will want to look at new vehicles.
  • Full Warranty Coverage: If full-term warranty coverage is important to you, then a new vehicle is probably the smartest choice. Unless you sell the vehicle before its warranty is up, you’ll reap the full benefits of the bumper-to-bumper and powertrain warranties.

New Car Drawbacks

  • More Expensive: The benefits of new vehicles are reflected in the price. You’ll pay more for a new vehicle than you would a used or certified pre-owned vehicle, but some Hastings drivers place a lot of value in that new car feeling. If your goal is to bring home a brand-new car, expect to pay a higher tax and plan for higher insurance costs. Additionally, once your new vehicle’s warranty expires, you’ll be responsible for more of the maintenance costs. 

Used Car Benefits

  • Budget-Oriented: If you have a tight budget, buying a used vehicle is a financially prudent choice. Not only is the sticker price lower, but you’ll pay a lower tax, and insurance rates are usually lower on used cars.
  • Slower Depreciation: Used vehicles have already experienced most of the depreciation that every new car is subjected to. As used vehicles age, they lose their value at a much slower rate.
  • Lower Risk of Becoming Upside Down On Your Loan: If you intend to take out an auto loan, there’s a much lower risk of negative equity (owing more than what the car is worth) when you finance a used car. 

Used Car Drawbacks

  • Higher Interest Rates: Most used car loans have higher interest rates than new car loans. However, the lower price of the vehicle helps offset that, so you should still be able to get an affordable monthly payment. 

Compare Different New vs. Used Cars at Midway Chrysler Dodge Jeep Ram 

Now that you know more about the difference between new vs. used cars and some of the benefits as well as drawbacks, the next step is letting our finance department help you find the model that works for you. Our team is here to make the car buying process easy, and that begins with applying for financing online from the comfort of your own home, before you head out to Lexington in your sweet new-to-you ride.

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