Should You Get a New or Used Car?
We love new cars so much that we’ve even given life to the scent of a new car that’s fresh from the dealership. You just have to love that smell! The question that many car buyers wrestle with is whether to purchase a new or used vehicle.
If you’re in the market for a new vehicle, it’s a good idea to weigh your options before you end up making a purchase that costs you more in the long run than you expected. There are a lot of factors to consider before a car purchase, so continue reading to learn what they are.
Used cars are much cheaper than new ones.
Almost anything you purchase second-hand will cost significantly less than it would if it were new. This being the case, it’s natural that used cars are usually significantly cheaper than new cars. Used cars come with lower down payments and monthly payments on car loans.
Here’s something you may not have known if you’ve never purchased or considered purchasing a used vehicle: down payments for used cars aren’t just lower because the vehicle price is lower. Usually, when you purchase a new vehicle, you have to make a down payment of at least 20%. Used car buyers sometimes pay lower than 10% down on vehicles.
You can always put down more than the required down payment if you want to lower your monthly payments. With an online car finance calculator, you can figure out how much your monthly payments for your vehicle will be based on the price of the vehicle and your down payment. It’s a good idea to use the calculator to figure out what you can afford in a new car.
New cars have more safety features.
We tend to get excited about the new gadgets and features of new cars, but their greatest benefit is that they come with the latest safety features. Safety is one of the things that make new vehicles worth their purchase price, especially when you have family members to consider.
New cars tend to be safer, but you shouldn’t go spend a lot of money on an impulse buy for something that’s not in your budget. You can usually find great deals on used cars that are only three model years old. Even if you know how to protect yourself on the road, you should always consider safety when shopping.
Used car dealerships are more willing to work with you regardless of credit score.
One of the best things about purchasing a used car is that used car dealers are more likely to disregard your credit score if you can prove you can pay your auto loan. However, your credit may still affect your interest rate. This means that the higher your credit score is, the lower rate you’ll receive.
There are some used car dealerships that accept your job as your credit, and even though they don’t consider your credit, they’re a great way to build your credit. If your credit score is less than desirable, buying a used vehicle and keeping up with your car payments is a great way to inch closer toward your financial goals.
Used cars don’t depreciate as quickly as new cars.
You can definitely have a great time cruising and showing off a new car, but by the time it’s ready for its first oil change, it will already be worth significantly less than it was when you bought it. New car buyers lose a ton of money in depreciation within the first few years of their car purchase. However, a used car that’s three-model-years old will depreciate at half the rate.
If you’re looking for easy ways to save money in 2020 that still work in 2021 and will work in 2022, do your homework and buy certified used. Buying certified used is an easy way to get a great, gently-used, vehicle at a discount price. Certified used vehicles are ones that are three-model-years old or newer and have been certified by the manufacturer as being like new. Certified used vehicle buyers can save as much money as new car buyers lose in depreciation three years while getting a car of almost equal quality.
Deciding whether to buy a used or new car comes down to your personal needs and how much money you have to spend on a vehicle. Just know that buying a used vehicle means you may have to sacrifice quality.