Should You Buy New vs Used Cars? 3 Factors to Consider

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New or used?

This the #1 question in the mind of anyone looking to buy a car, and it’s easy to see why. In the United States, auto manufacturers sell about 17 million cars every year. On the other hand, about 40 million used car units are sold each year.

It’s clear more people are buying used cars, but new cars aren’t lagging too far behind. Which way should you go? You have a decision to make!

In this article, we’re diving into the new vs used cars debate and sharing the things you should consider when making the choice.

Read on!

Your Budget

The single most important factor to consider when you’re debating whether to buy a new or used car is your budget.

You see, if money isn’t a problem to you, there’s no doubt that you’ll snap up any new car of your choice, be it a Tesla Model X or a Chrysler Crossfire.

However, if you’re like the vast majority of Americans, you don’t have the money to splurge on a new car of your choice. This is why you have to assess your financial situation before choosing a car.

The average price of a new car is $36,000, while that of a used car is about $21,000. If your finances aren’t solid, you would do with a cheaper car. You will find quality used cars that suit your budget.

This isn’t to say you can’t afford a new car even when your finances are on shaky ground. You can, especially through financing. You can get a loan to purchase a new car, but you’ll pay far more than you’d have paid for it in cash.

The Benefits of New vs Used Cars

New cars offer significant benefits over used cars.

For instance, when you buy a new car you’re getting the latest automotive technology. New cars are safer and the infotainment systems will please you. You won’t worry about repairs – at least not while the car is under warranty.

On the other hand, used cars are older, which means they pack older technology. They are not as safe as new cars and they might not be under the manufacturer’s warranty. This means you’ll be forced to take care of repairs out-of-pocket unless you purchase a warranty.

Comparatively, new cars offer more advantages and fewer downsides than used cars. Buying a used car is akin to making a risky bet. You never quite know what you’re getting under the hood.

Resale Value

Unless you’re a collector, you will sell your car a couple of years down the road. If this is the case, you want to buy a car that holds up value well.

New cars are known to depreciate rapidly, especially within the first three years of ownership. Used cars don’t depreciate as fast.

So, if you intend to resale the car later on and expect to fetch a good amount, buy a used car and ensure the make is known to hold value.

New or Used? Your Choice

New vs used cars: it’s never an easy debate. Some people will go with new cars all day long, others are diehards of used cars. That’s not the point, though. The point is we have given you enough information to make a good choice.

Keep reading our blog for more motoring tips.