If you’re in the market for a vehicle, one of the first questions you have to ask yourself is this: new or used? The idea of a new car is nice – the new car smell, the chance to break in a brand-new engine. But there are huge downsides to buying a new car and many advantages to purchasing a quality used car. Here are a few for your consideration:
Insurance: It usually costs a lot more to insure a new vehicle than it does to insure a used car. If you buy a new car, you generally have to purchase enough insurance to cover the amount you owe in payments, which will typically be much more than you’d pay for a used car. Also, new car parts are more expensive, so that is factored into the insurance cost as well.
Depreciation: New cars start to lose value the moment you drive away from the dealership. In fact, it’s not uncommon for a car to lose up to half its value within just a couple of years. Usually used cars are a much better bargain.
New car bugs: You hear about it on the news all the time – manufacturers sending a recall notice to millions of customers. Although manufacturer defects can be discovered later, there’s a greater chance of discovering a problem with a brand-new model that employs new design or technology.
Upgrades: When you look at new cars, the price on the window is generally for the most basic model. If you want to upgrade for special features – perhaps a sunroof or power package – you’ll typically pay hundreds if not thousands more than you’d pay for the basic model. With a used car, the original owner already paid the premium. Generally, the value difference between upgraded and basic used cars is much narrower than the gap between basic and premium new cars.
Financing: Getting financing for any vehicle is a function of risk on the part of the lender. Since new cars typically cost more than used cars, there is greater risk attached to financing the higher amount. This is where your credit score comes into play. The higher your score, combined with your ability to make monthly payments, the better your chance of getting financed for a new vehicle. If your credit score is low, you’ll probably need to choose a used vehicle and a dealer who can work with you to get you the car you need at a payment you can afford.
As you can see, there are several advantages to considering a used car – these are just a few of the many things you may want to consider. The key is to make sure you purchase a quality used car that will give you many years of reliable service. Let us know of any questions you may have on buying a used car instead of new, and the experts at J.D. Byrider will be glad to assist you!
