If you are thinking about buying a vehicle, you may assume that you’ll buy a new one. After all, if you buy new, you don’t have to worry about what the car’s history might be and whether you’ll be stuck with expensive repairs soon after buying it.
Would it surprise you to learn that you can get these assurances with a used vehicle as well and that you may save even more than you anticipate? Buying used may not be right for everyone, but before you jump into buying new, consider the points below.
There’s no question that the initial price of buying a used vehicle is cheaper than buying a new one, meaning a lower monthly payment or a shorter time to fully pay off the car. This might also mean that you can get something better used for the same price or less than you’d pay for a new vehicle.
Whether you are buying new or used, you can take out a loan to secure the funds to pay for it. While a dealer may offer an auto loan, you may be able to find low-interest personal loans that have better rates. With some research, you’ll find that it takes no more than a minute to get matched with the right loan options for you.
Did you know that a new car starts to decline in value before the ink has dried on the paperwork you signed to finalize the sale? This has nothing to do with the dealer or the car itself. It’s simply how the automotive industry works.
With a used car, the depreciation is significantly less rapid. This means that if you decide to sell it in a year or two, it won’t have lost much value from the purchase price. You’ll see a much steeper difference if you’ve bought new.
Know What to Expect
Not every new model a manufacturer produces is necessarily an improvement on the older ones. Sometimes, a new model will have a particular issue, but it’s one that isn’t apparent until there are a lot of them on the road.
When you buy new, there is always a risk that there will be a problem across the entire model that year, and even with a warranty in place, this can be a hassle. Buying used, you can research whether drivers consistently reported problems with a particular model or year and avoid that.
Certified Pre-Owned Cars
If you are still unconvinced about the tradeoffs involved in buying used and are concerned about maintenance, you may want to consider buying a certified pre-owned vehicle. These cost more than a regular used car but less than a new one, and they tend to be low-mileage and only a few years old.
More importantly, these vehicles have been inspected, and any major repairs have already been made. Generally, there are also extended warranties and other perks. Precisely how CPO programs operate and what they offer vary, so you can talk to dealers about what they have available under this umbrella.