Should You Buy a New Car or a Used Car

by Zelmarie Roets | 10 Nov 2022 | Used Car Buyers Share:

Should You Buy a New Car or a Used Car? SELL MY CAR   Whether you are purchasing your first car or you’re replacing an old one, you probably have to decide between buying new or used cars. But, which one should you choose? New cars can be exciting, but they cost more than used cars and they may depreciate in value the moment you drive them off the lot. Used cars may not be as exciting as new ones, but they can save you thousands of dollars and last just as long if not longer.  

  • Advantages of buying a new car
  1. A new car will likely have all of the latest safety features.
  2. It will also have the newest technology, which can make your life easier and more enjoyable.
  3. A new car will be under warranty, so you won't have to worry about expensive repairs.
  4. Buying a new car can also be a good investment, as it will hold its value better than a used car.
  5. Finally, driving a new car is simply more fun!

 

  • Advantages of buying a used car
  1. Used cars are usually cheaper than new cars. This is the most obvious advantage of buying a used car.
  2. Used cars have already taken their biggest depreciation hit. This means that you won’t lose as much money if you decide to sell the car later on.
  3. Buying a used car can sometimes get you a better model than you could afford if you bought it new. This is because as new models come out, the price of older models drops.

 

  • Buying from dealers vs. private parties

If you're considering buying a used car, you have two main options: buying from a dealer or buying from a private party. There are pros and cons to both options. If you buy from a dealer, the salespeople will often be very pushy and try to upsell features that might not be necessary for your needs. However, dealerships offer warranties that can protect you in case of unforeseen issues like faulty wiring. On the other hand, if you buy from a private party, there's no warranty protection but the salesperson is more likely to let you look at the vehicle in peace without constantly trying to sell things. The downside is that some people who buy cars privately do so because they owe money on their current vehicle and can't afford anything else- so it's possible they might not be forthcoming about any flaws with the car they're selling.  

  • Research your financing options

When you're trying to decide whether to buy a new car or a used car, one of the most important factors to consider is financing. If you're able to get a loan for a new car with a lower interest rate than you could for a used car, then it might make sense to go with the new car.  

  • Total Cost of Ownership

The total cost of ownership (TCO) is the true cost of owning and operating a vehicle over its entire lifespan. It includes everything from the initial purchase price to fuel, insurance, repairs, and maintenance. In general, TCO for new cars is higher than for used cars. But that doesn’t mean that buying a used car is always the better option. Consider these factors when making your decision: - Depreciation: A new car depreciates more quickly than a used car. In the first year alone, a new car can lose 20% of its value. By contrast, a used car has already gone through its biggest depreciation hit. - Insurance: Insurance rates are generally higher for new cars than for used cars.  

  • Compare vehicles at Edmunds

Edmunds is a great resource for comparing new and used cars. They have detailed information on just about every make and model, as well as user-generated reviews. Plus, their car value estimator tool can give you an idea of how much your trade-in is worth.  

  • Choose the right vehicle for you

The first step is to research the car you want. Find out the dealer invoice price and the true market value. Then, find comparable prices for similar cars in your area. Once you have this information, you're ready to start negotiating with dealers.  

  • Tips for negotiation with dealers

No matter which route you decide to take, it’s important that you know how to negotiate with dealers. After all, they are the experts. Here are a few tips:

  1. Do your research ahead of time and know the value of the car you’re interested in. This way, you won’t be taken advantage of by an overzealous dealer.
  2. Be prepared to walk away from the negotiating table.