What to Consider When Purchasing a Car
When it comes to purchasing an automobile there are virtually limitless options out there available to you. You can go with a compact, sedan, SUV, truck, or van. You can go with electric, gas, or hybrid. You can select based on fuel economy or overall size and power. There’s really no wrong way to select a vehicle, but when you really boil the process down to its core, it comes down to a simple question: new or used? This is usually the top-of-the-funnel decision that a lot of car-buyers need to figure out before they make their way down the line to more granular things like features, drivetrain, and so forth.
When it comes to new vs. used, there are pros and cons to each, all of which are going to affect price, reliability, and your overall comfort level with the deal. We’ll examine the pros and cons of each.
New Car Pro #1 – Full Warranty
When you buy a car, one of the top things you want out of the deal is the feeling of protection. You want to know that in the event something goes wrong, that you’re not going to be liable for the repairs. This is why a lot of folks lean towards new cars; they know they are going to be covered under warranty for at least a few years. That feeling of safety and security can warrant the high sticker price.
New Car Pro #2 – No Previous Drivers Means No Previous Issues
The beauty of going with a brand-new car is that you’re not going to inherit any vehicle issues from a previous owner. Getting a car fresh off the factory line means that you can count on your vehicle being in pristine condition and it likely won’t need any major repairs done for several years. As long as you keep up with the oil changes, tire rotations, and other small stuff, you can count on your new vehicle performing at a high-level.
New Car Pro #3 – All the Latest and Greatest Features
Any car that you buy is going to get you from point A to point B, however, it’s the features that are included that make the journey fun. With a brand-new car, you can count on getting every modern bell and whistle imaginable. That not only includes entertainment and convenience features such as touch screen consoles, satellite radio, and smartphone connectivity, but it also includes all the latest safety features such as impact alerts and camera systems.
New Car Con #1 – Overall Price
The hurdle for car buyers when it comes to new cars is the overall sticker price. Even if you’re an expert negotiator and have a trade-in, you’re still likely going to have an extremely high monthly car payment with a new vehicle. Add to that the sales tax and the cost of insurance, and this payment will likely eat up a lot of your monthly budget.
New Car Con #2 – Instant Depreciation
The other big negative when it comes to buying a new car is that it depreciates as soon as you drive it off the lot, sometimes by as much as 20% or more. That’s a hard pill to swallow if you just spent $50,000 for a new vehicle. Additionally, a lot of new cars see the majority of their depreciation within the first three years. That means that you could buy a new car for $40,000 and three years later it would only be worth about half of that.
Used Car Pro #1 – Better Deal on Price
When it comes to car shopping, the entire point is to get the best vehicle you can for the least amount of money. Used car shopping allows you to more easily do that and affords more room for talking down the price during negotiation. New cars, on the other hand, don’t have as much wiggle room on the sticker price.
Used Car Pro #2 – Better Deal on Insurance Rates
A brand-new car is going to cost an arm and a leg to insure. That’s a big reason why a lot of car buyers shy away from going with the most recent models. Used cars, on the other hand, are much more reasonable with their insurance premiums.
Used Car Pro #3 – Less Devaluation Compared to New
As previously mentioned, a new car will instantly devalue as soon as you drive it off the lot. It will also see a significant devaluation in the first three years of owning it. With used cars, you can still count on the vehicle depreciating, however, the brunt of it was taken on by the first owner when they originally bought it.
Used Car Con #1 – Might Not Be as Reliable
There’s always a chance that something is mechanically wrong with a used vehicle. Or, perhaps something isn’t wrong now, but some of the parts are coming up due for replacement. These are the issues that new car owners don’t have to think about for a while. When buying a used car, maintenance has to be at the forefront of your mind. A good way to protect yourself is by shopping for used cars that are certified pre-owned or that come with some sort of limited warranty.
Used Car Con #2 – Can’t Customize
One of the fun things about buying a new car is that you can customize it however you see fit, from the features to the interior and color. However, with a used car this is not an option. What you see is what you get, so you will have to be willing to make some concessions. The car won’t be exactly what you want, but you can get it pretty close. Keep in mind, you can always invest more money into the car on custom options after you purchase it.
Start Shopping for Your New or Used Car Today!
As we’ve outlined here, there are several pros and cons as they relate to car purchases. If you’re searching for terms like “new car dealership near me” you’re going to find several places in your area that offer a wide variety of options – both new and used. If you’re looking for the very best in new car technology, the Volkswagen dealership has the new VW electric car for sale. The all new ID.4 has been generating a lot of positive buzz with many calling it a game-changer in the electric SUV game.