Is it Better to Buy a New or Used Car?

Used cars on a car lot

 

So you’ve decided that it’s time to upgrade and you’re ready to trade in your current model, but you need to decide whether it is better to buy a new or used car. While neither option is in itself good or bad, one will stand out as the better option based on your needs, budgets, and what you’re looking for. If you’re struggling to get started in Dallas, allow the team at Bob Moore Auto Group to help! We’ll compare new vs. used car benefits and potential drawbacks in the guide below.

New vs. Used Cars: Benefits and Drawbacks of Each

New Car Benefits

  • Updated Technology: When you buy or lease a brand-new car, you can anticipate a cabin full of modern technology. In-vehicle technology is rapidly advancing year by year, so a used vehicle that’s only a few years old might already be outdated in terms of its tech package.
  • Optimal Fuel-Efficiency: In order to compete in today’s auto market, a vehicle has to deliver competitive fuel economy numbers. Even trucks and SUVs are held to higher standards, leading to a decrease in V6 and V8 engines and an increase in turbocharged motors that are both fuel-efficient and powerful. In general, if you want the best available mpg ratings, you will want to look at new vehicles.
  • Full Warranty Coverage: If full-term warranty coverage is important to you, then a new vehicle is probably the smartest choice. Unless you sell the vehicle before its warranty is up, you’ll reap the full benefits of the bumper-to-bumper and powertrain warranties.

New Car Drawbacks

  • More Expensive: The benefits of new vehicles are reflected in the price. You’ll pay more for a new vehicle than you would a used or certified pre-owned vehicle, but some Edmond drivers place a lot of value in that new car feeling. If your goal is to bring home a brand new car, expect to pay a higher tax and plan for higher insurance costs. Additionally, once your new vehicle’s warranty expires, you’ll be responsible for more of the maintenance costs.

Used Car Benefits

  • Budget-Oriented: If you have a tight budget, buying a used vehicle is a financially prudent choice. Not only is the sticker price lower, but you’ll pay a lower tax, and insurance rates are usually lower on used cars.
  • Slower Depreciation: Used vehicles have already experienced most of the depreciation that every new car is subjected to. As used vehicles age, they lose their value at a much slower rate.
  • Lower Risk of Becoming Upside Down On Your Loan: If you intend to take out an auto loan, there’s a much lower risk of negative equity (owing more than what the car is worth) when you finance a used car.

Used Car Drawbacks

  • Higher Interest Rates: Most used car loans have higher interest rates than new car loans. However, the lower price of the vehicle helps offset that, so you should still be able to get an affordable monthly payment.

Compare New vs. Used Cars at Bob Moore Auto Group

Now that you know whether it’s better to buy a new or used car, the next step is finding the one that works for you! Our finance department knows the best way to make the car buying process easy. You can get pre-approved for financing online, or take advantage of our selection of car buying tips for additional ways to stay ahead of the game when car shopping.

 

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