There are different advantages – and drawbacks – associated with both new and used vehicles. Here’s a basic road map.
When it’s time to buy a vehicle, many shoppers make the mistake of thinking it has to be new. While new vehicles certainly have their benefits, such as the latest technology and features, they also come with a higher sticker price and steeper depreciation. Used vehicles can make more financial sense, but may not have the latest and greatest technology. Decisions, Decisions.
Consider the Pros and Cons of Each
New vehicles may offer:
- Lower loan interest rates or financing incentives
- Full warranties (typically for the first 36 months or designated mileage, whichever comes first)
- The latest safety features and technology
- Less maintenance cost initially
- A clean vehicle history
Used vehicles may offer:
- Lower purchase price
- A limited warranty if it’s a certified pre-owned vehicle
- Lower insurance, licensing, and registration fees (based on price)
- Less depreciation or loss of value while you own the car