At What Price Is a New Car Better Than Used Ones?

When buying cars, one of the major decisions that you need to make is whether to buy a brand-new car or a pre-owned one. As the current car market is pretty high, it’s quite impossible to find a deal that benefits you the most. So if you’re a new car shopper, it’s okay to wonder whether your first car should be new or used.

Used cars are cheaper than brand-new cars, but they tend to have a few mechanical issues as well as limited features and high maintenance costs. Again, brand-new cars are expensive, and if you can’t finance the car properly, it might be hard for you to get a good deal. But you can get the best safety features, financing options, and warranties.

The Pros of Buying a Brand New Car

There are plenty of reasons why you should buy a brand-new car over a used one. Here we’ve made a list for your convenience:

Comes with Newest Features

For the last couple of years, the automotive industry has seen a revolutionary advancement in-car technologies. These technologies made the car more and more practical and easier to drive. These cutting-edge technologies not only enhanced the driving experience but also made it safer and more enjoyable for everyone.

For instance, most new cars now have advanced driver assistance features that protect you from potential obstacles around the car by giving alerts. Some features can automatically brake the vehicle to avoid a collision. Nowadays, you can even give voice commands to navigate the car, make a call or send text messages, etc.

Offers Great Financing Options

A very big advantage of buying a new car is most dealerships offer special financing deals and discounts as an incentive when you try to negotiate for the car. These usually include zero percent financing or cash back which lowers the cost of the vehicle. So if you want an affordable purchase, these amazing financing offers can get you what you want. You can also get auto loan offers with monthly payments and interest rates that are suitable for your situation.

Has Better and Longer Warranty

In comparison with used cars, new ones’ are less likely to break down easily. Almost all branded cars come with warranties. Most of these warranties are usually bumper-to-bumper guarantees that cover almost all the routine maintenance costs. Many warranties even come with free roadside assistance that you can get with the purchase.

May Alter the Vehicle

While looking for a new car, you will always have the option to choose its color, accessories, trim level, upholstery, and other necessary features. You can also upgrade its technological features or add new features by paying extra cash. So you get to customize your desired car within your budget!

The Cons of Buying a Brand New Car

Undoubtedly there are so many advantages to buying a new car. But despite all of that, buying a new car comes with a set of disadvantages also. These are:

More Costlier

New car prices are definitely way higher than average used cars. If your finances are limited, it would be better to go for a used car, as there must be better options within your reach. Even if you have enough money to buy the car, there might be other additional costs associated with it.

Depreciates Faster

New car prices generally depreciate faster than used cars. A new car loses almost 20% of its value within its first year. So if you have a plan to sell your own car in the future, there are chances that you will not get enough money for it, and it might not be enough to pay off the auto loan either. In this case, buying a used car is a wiser decision than buying a new one.

High Sales Tax

Purchasing a new car means the sales tax will be higher as the car is more expensive than pre-owned cars. As the sales tax is increased, the overall price of the car will also increase. This is one of the major drawbacks of buying a brand-new car. But the sales taxes may vary from state to state as many states do not require high sales tax.

The Pros of Buying a Used Car

There are situations when buying a used car is better than buying a new one. Here are a few reasons why purchasing a used vehicle is a better idea:

Cheaper Than New Cars

The main benefit of buying a used car over a new one is it’s always way cheaper than the new one. if you have a particular model in your mind, after researching a bit, you will be able to find greater deals or maybe better deals for other similar cars. You can save money by buying your dream car, even if it is only a few years old. Another plus point is as almost all the depreciation has already occurred, it will be easier to sell the car later.

Might Get CPO Offers

Certified Pre-owned or CPO cars are those cars that are still under warranty and were well maintained by their previous owners. Also, most of these cars are lightly used, repaired, and reconditioned by the dealer. Usually, it is hard to get discounts or other financing deals on used car purchases, but you might be eligible for discounts if you buy a CPO car.

Also, many dealerships offer a limited warranty that you can use for future maintenance of the car. You can type your search query and find whether the dealer you are willing to buy from provides such offers.

The Cons of Buying a Used Car

Purchasing an old vehicle is not suitable for everyone. Here learn a few drawbacks of buying a used car:

Outdated Features and Technologies

Most used cars are 3-4 years old with outdated technologies. So if you have some specific features on your mind that are pretty new or advanced, then buying a used car might not be for you because it might not be possible to install or upgrade the technologies in those cars either. So if you’re looking for advanced safety features or new technology, buying a new vehicle would be better for you.

Higher Maintenance Costs

As a vehicle gets older, it needs more care and routine maintenance than other cars. So remember that sometimes you might need to pay more for maintenance than what you paid to buy the car. CPO cars might not cause this trouble but used cars will most likely need more maintenance and repair.

The Buying Process Takes Time

Purchasing a new car is simple; you don’t need to go through much trouble. But buying a used car can sometimes get pretty complex. Before buying a used car, you need to do extensive research, review vehicle history reports, then test-drive and negotiate the price with the dealers; if the car is not on the dealer’s lot, you might have to wait for months to get the car.

Which is a Better Option: A used car or a new car?

Whether to buy a new or used car entirely depends on your personal situation, budget, and priorities. So if you ask us, which might be a better option, we can only give you the comparison between buying a new car over a used one. The final decision is in your hand. But here are a few things that might help you make the decision:

Budget

As cars are expensive and you want to get the best deal within your reach, buying a used one might be better for you. But don’t forget that the actual cost of vehicle ownership is not just the sticker price; it includes monthly payments, maintenance costs, down payment, gas prices, etc.

Your Needs and Wants

You need to decide what type of vehicle you need and why you need that. Make a list of things why you need a car, then decide whether a used one will satisfy all your needs or not.

Purchase Plans

Before buying a car, finalize your purchase plans first. If you want comprehensive coverage, it would be better to buy a new car. If you pay cash, you won’t have to worry about interest rates. When financing the car, choose interest plans wisely so that you won’t have to spend more money.

Conclusion

Due to the pandemic, car prices are still pretty high. But regardless of the automotive market, it’s possible to find good deals on vehicles if you know what you’re looking for. So before closing the deal, look for low-interest rates, make large down payments, find discounts, pay cash for the car, etc. Research properly to find the best possible deal. For that, you can visit our website Zippy Cash for Cars, to know more about cars and then find great deals!