June 12, 2024
Are New Or Used Cars a Better Buy

Are New Or Used Cars a Better Buy?

Every year, millions of drivers purchase new and used cars from dealerships across the country. This article will focus on which option provides a better value for the money.

How Drivers Can Answer This Question for Themselves

Some people would never consider anything but a new car, insisting that it’s worth the extra money to have a full range of customization options and the knowledge that they’ll be the first ones to sit behind the wheel.

Not everyone can afford to make the choice based on personal preference alone. Most American car buyers must at least consider factors like initial purchase price, ongoing payments, and unexpected costs.

Buying Used Saves on Initial Purchase Price

The first place budget-conscious drivers can expect to see savings when buying used cars is in the initial purchase price. New cars depreciate quickly when their first owners drive them away from the showroom. The price tags associated with used vehicles reflect that fact.

Because most drivers don’t purchase vehicles outright and take out auto loans instead, they might want to consider this difference in average monthly payments. As of late 2023, the average monthly payment on a new car was $738, while used car buyers paid just $532.

Whether they’re buying used or new cars, drivers can expect to pay more than they would have a few years ago. However, the prices for new vehicles are finally dropping, reducing the demand for used ones. That’s good news for any driver on a budget.

Buying New May Help Drivers Save on Maintenance and Repairs

While used cars almost always cost less out the door than new ones, they’re not as reliable. The average annual cost of ownership for new vehicles tends to be lower, and many dealerships offer incentives like free maintenance visits.

New cars have more comprehensive warranties. As a result, used car buyers may wind up paying more throughout their cars’ lifespans.

The best way to mitigate the risk of increased maintenance costs is to purchase a certified pre-owned vehicle. These vehicles are professionally inspected before resale. They also tend to be one-owner cars.

Buying from dealerships that offer used car warranties can also mitigate risk, as can purchasing high-quality vehicles from respected brands.

How to Decide Between Buying New or Used Cars

For most drivers, the choice between buying new or used cars is a practical one. People generally weigh the reduced initial purchase prices, insurance costs, and dealer fees associated with buying used against the potential risk of increased maintenance costs.

Money isn’t the only practical issue car buyers need to consider. People who can afford to wait for the right vehicle have an easier time finding what they want when buying used. Drivers who need to find good deals fast may not have as many options.

Whether buying new or used, drivers should take the time to research specific vehicles. Check the models’ average five-year costs to own in addition to purchase prices and take multiple cars for test drives if possible. More often than not, cash-strapped buyers find that it’s worth taking some extra time to research quality used cars.

 

This post may contain affiliate links. Meaning a commission is given should you decide to make a purchase through these links, at no cost to you. All products shown are researched and tested to give an accurate review for you.