Buying a Vehicle: New vs Used
There are a few necessities needed to enjoy modern life and reliable transportation is one of them. However, there are a lot of factors to consider before purchasing a vehicle. You may need a car with superior fuel efficiency if your work far from home. You might need something with additional utility if you live in a rural area. You must also consider purchasing a new vehicle as opposed to buying something used. This is a big decision, because each choice has its pros and cons.
Benefits of Buying a Used Car
The biggest difference in buying a used car as opposed to a new one is the equity. A used vehicle can sometimes be purchased for less than its retail value. This is especially true when the vehicle is bought from an individual owner as opposed to buying from a dealership. However, new vehicles are notorious for losing value over the first year. In fact, most cars lose about 10% of their retail value when they drive off of the dealership property. This means a $40,000 car is only worth about $36,000 once you buy it. Anyone looking to save money should definitely buy used as opposed to buying new. However there are advantages to purchasing a vehicle from a dealership.
Benefits of Certified Pre-Owned
Just because you purchase your vehicle from a dealership doesn’t mean it was new. Certified pre-owned vehicles are less expensive than brand new vehicles. Any vehicle that you purchased from a private seller is subject to mechanical failure. Problems with the engine, transmission and the suspension can cost thousands to repair, but certified pre-owned vehicles rarely have these problems. A used Lexus sold at a Lexus dealership was probably traded in for a newer model. The mechanics at the dealership work exclusively on this one brand. They usually offer an impressive warranty, even on the used vehicles. This is a good alternative to buying a car with no assurance that it’s worth the price.
Benefits of Financing a New Car
The biggest advantage to purchasing a new vehicle is peace of mind. Cars rarely experience major issues before they hit the 25,000 mile mark. A new car also has more modern safety features which could save the lives of your friends and family. The best time to purchase a new vehicle is at the end of the previous model year. Nearly every manufacturer has a year end sale to reduce their inventory and make room for the new vehicles. Take their advertised sale prices and put them through a car loan calculator to estimate your monthly payments. Buying a brand new car in December will reduce the amount you pay so you don’t lose as much equity. You also need to know your credit score before financing a car, because your Annual Percentage Rating (APR) can save, or cost you, thousands of dollars.
Used cars are better for people who are trying to save money while new cars are better for those who want reliability. If you’re looking for an excellent deal on a used car, call a few car rental services. These vehicles are typically well kept, and they’re sold at steep discounts. You can also find used cars at vehicle auctions, but they may not be in good condition.