Should I Buy a New or a Used Car?
If you are planning to purchase a new car, you probably have thought of the old age question, "Should I buy a new or a used car?" We will help you make your decision by providing you with all the facts about both options and then presenting you with the best auto dealerships in the U.S that can help you find the car your heart desires.
Many define a new car as one that has not been driven before. However, that is not strictly necessary as the 'new car' you find at the dealership could have a significant mileage on it. A new car, though, is one that has not been registered for personal use before.
There is definitely an appeal in getting a new car that mostly relies on the culturally symbolic status that comes with it. But when you are wondering about buying a new or a used one, it's best you know the advantages and drawbacks of both, and new cars certainly have their fair share of benefits.
#1: Warranty Protection
New cars usually, if not always, come with a manufacturer's warranty that could last for six years or 60,000 miles, whichever comes first. Also, many new cars come with two warranties, a powertrain one for the engine and transmission, and another bumper to bumper for everything else.
Moreover, new cars also have good reliability records. If they experience any breakdowns, the manufacturer's warranty will probably cover it. You won't have to worry about how your new ones have previously been treated.
#2: Free Roadside Assistance
Just like new cars come with extensive warranty coverage, they can also come with free roadside assistance. So you never have to worry about towing costs if your car breaks down in the middle of the road.
#3: Latest Features
It is no secret that new cars always come with the latest safety features and have better fuel efficiency.
#4: Better Financing Deals
If you have good or excellent credit, you could be offered a very low annual percentage rate and sometimes zero APR on your new car auto loan. This makes buying the new car much cheaper.
There are, of course, some drawbacks that come with buying new cars.
#1: More Expensive
New cars are generally more expensive than used ones. And if you are taking out an auto loan for a new car, you will be borrowing more money than you would if you were buying a used car, and not to mention you will be paying more in interest.
#2: Faster Depreciation
Depreciation here refers to the cost of your car over its useful life. With that said, new cars depreciate faster than used ones, as they lose most of their value in the first few years of ownership, if not after a few seconds after driving them off.
If you try to sell back the car you got from a dealer, you will be selling it for a much lower amount than its retail price.
#3: Pricier to Insure
New cars are also more expensive to insure as their replacement values are higher than used models.
#4: Not Forever New
Lastly, new cars will not be forever new, as, with time, they will get their first scratches, stains, and so on. Their monthly payments, however, will stick around for years.
Used, or pre-owned cars as dealerships call them, may not have the shiny glow and essence of a new car, but they certainly have their advantages.
#1: Lower prices
As we discussed earlier, as soon as the car is driven off from the dealer or lot, it loses much of its retail price as most of its depreciation has already occurred. Therefore, you buying a used car will cost way less than its original retail price.
#2: Extended Warranties
Most dealerships offer certified pre-owned cars with extended warranties that surpass the manufacturer's warranty. It is worth noting that certified used cars can cost slightly more than non-certified used cars, as they have been rigorously inspected for faults.
#3: Cheaper Insurance
Opposite to new cars, used ones can be cheaper to fully insure if you are paying for the car in cash.
The biggest drawback of buying a used car is perhaps unknowingly buying someone else's problem, as you might not know how exactly was the car treated before you. Other disadvantages include:
#1: Higher mileage
A used car will have driven more miles and have higher mileage. A car with high mileage will consequently have a lower lifespan and might need replacing sooner than later, which can end up costing you more than what you bargained for.
#2: Limited Options
You will obviously have limited options in choosing the car of your dreams if you are buying a pre-owned vehicle.
#3: No return or exchange policy
As most dealerships and manufacturers offer a return or exchange policy for the new car you buy, a used car will not come with such luxury. The chances are that you will be stuck with the car you get, even if it has unseen problems.
So before you make a hasty decision, it is best you consider both options as you weigh all the associated costs with both options. These costs can include down payment, taxes, insurance, maintenance, repairs, fuel, and oil.
Remember to diligently think over your options, as both have their own benefits and downsides. Once you make your decision, the dealerships we will recommend below will surely help you get the car you desire and help you finance it no matter your credit score or history.
Carvana is our top choice for one of the best car dealerships. It is a fully online dealership known for its exemplary service. This dealership offers over 25,000 certified pre-owned vehicles and will help you finance your car, no matter your credit score.
With Carvana, you can borrow up to $85,000 with a maximum loan term of 72 months. Your prequalification validity will last for 45 days, and upon purchase, your new car will be delivered to your doorstep the next day.
For our second-best pick, we present you with DriveTime. This dealership is among the most highly trusted and rated across the U.S, with accreditation and an A+ rating from the Better Business Bureau.
With DriveTime, you get to shop through over 11,000 cars from its 130 dealership locations. It also offers great benefits, some of which are:
- Money-back guarantee
- Basic warranty
- DriveCare program
- Powertrain coverage
- GAP coverage
CarMax is our third recommendation for one of the best dealerships in the U.S. It has been providing unmatched automotive services since 1993 and will help you finance your car through its own financing division.
CarMax offers over 50,000 pre-owned vehicles to shop from, all of which come with a 7-day money-back guarantee and exchange policy. The dealership also follows a 'no-haggle' policy, which means you are not obligated to continue your purchase process at any point if you change your mind.