New vs. Used Cars

Date posted: July 25, 2012

Before beginning your car search, the first thing you need to consider is – Should I buy a new or used car? New and used cars for sale have their own benefits depending on what best suits you and your budget.

New Cars

A new car may require less maintenance. The parts on a new car haven’t experienced the “wear-and-tear” of everyday use yet – meaning you will likely spend less on vehicle upkeep. New cars come with manufacturer-backed warranty coverage and may have roadside assistance in case of emergency. They are a good purchase if you are planning to keep a vehicle for a long period of time. The downside to buying a new car is the depreciation rate. Some lose up to 50% of their value in the first year alone.

Used Cars

If you’re on a budget, buying a used car can bring you the most “bang” for your buck. You may be able to afford more of the extra features and options that more expensive new cars may have. If you like to buy a different car every few years, you may take less of a depreciation hit each time if you buy used cars. Financing for used car buying may also be more difficult to secure– depending on how much your loan amount is and the duration of your loan.

If you want new car features without paying the new car price, Certified Pre-Owned (CPO) cars may be the option for you. These cars live up to the high standards set by manufacturers – ensuring they are as good as new. CPO vehicles often come with extended warranties and other added benefits, such as a Carfax Report and a rigorous inspection already done for you.

*When buying any used car, Carfax suggests that you get a mechanic’s inspection, a CARFAX Vehicle History Report and take a test drive to help ensure a great buy.

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4 thoughts on “New vs. Used Cars

  1. Thanks for the info – it’s always tempting to buy new for me, but then reality kicks in and I can often only afford used. I might have a look and see what i can afford a Certified Pre-Owned car next time though…

  2. Great post! I have gotten used cars the last 2 times I’ve bought a car. It just doesn’t make sense to me to spend extra on the new car when a big part of what you pay for is the depreciation in the fist year you own it. Thanks for posting, great read!

  3. There are a lot of questions involved in the process of buying a car, but the first, simplest one is probably the most important: Should you buy new or used? To help you choose, we’ve laid out the advantages of both below. Keep in mind that although there are more advantages listed on the new side, the pros in the used column are big ones and in many cases can be more to your advantage. Chances are, you can spec a new car just the way you want it, or at least have the dealer search for one with the right combination of options and interior and exterior colors. Well, duh. A new car hasn’t been in any accidents, hasn’t been mistreated by unknown evildoers, doesn’t smell funny, has seen no wear or tear, and comes with a clean history that includes only being driven off the line, onto a transporter, and around the dealer’s lot.

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