When you are buying a vehicle one of the biggest questions you have to ask is where you should buy new or used. Buying new or used both have their own pros and cons. Here, we will take a look at the advantages and disadvantages of purchasing a new or a used vehicle.
Pros of buying new
Buying a new vehicle is one of the most exciting and memorable experiences. There are also a number of other reasons why you may want to consider purchasing new.
1). You are the first owner of the vehicle
When you purchase a new vehicle, you are the first owner. That means that you will be getting the vehicle with almost no miles on it. Everything on the vehicle will be in pristine condition from the engine to the car seats. If you enjoy driving a vehicle in flawless condition, then you will want to consider purchasing new.
2). The vehicle has the latest equipment
Every year, vehicles are coming out with new innovations. From driver assist technology to safety equipment, new vehicles give you the latest and the greatest of what a vehicle has to offer. When you want to drive one of the most advanced vehicles on the road, then you will want to purchase new.
3). The vehicle is covered under warranty
When you purchase a new vehicle, it is going to be covered under a comprehensive warranty for several years. This will not only save you on repairs, it will also give you the peace of mind that you are purchasing a vehicle that will give you a worry free purchasing experience.
Cons of buying new
While buying a new vehicle can be exciting, there are also some downsides to consider. Here's why purchasing may not be ideal for you.
1). The price is higher
When you purchase a new vehicle, you will be paying a higher price versus purchasing a used vehicle. Therefore, you have to be prepared to pay a higher down payment and pay higher monthly payments.
2). You take the brunt of the depreciation
When you purchase a new vehicle, you will have to deal with steep depreciation for the first couple of years. In fact, many new vehicles will lose half of their value in the first three or four years of ownership.
3). Insurance can be higher
When you purchase a new vehicle, insurance companies will expect you to have full coverage until the vehicle is paid off. That means that you can expect to pay more for insurance coverage.
Pros of buying used
Buying a used vehicle can be one of the smartest purchasing decisions that you can make. Here's a look at some advantages of purchasing used.
1). The price is more affordable
When you purchase a used vehicle, you are usually paying less than buying a compared vehicle that is new. This can save you thousands of tens of thousands of dollars.
2). You don't have to deal with as much depreciation
if you purchase a vehicle that is about four years old, you are getting that vehicle at the "Sweet Spot" of the depreciation curve. This is the area where the steep depreciation of the vehicle begins to subside. That means that you are getting the vehicle at a great discount with not much more depreciation ahead of you.
3). Certain models are more attainable
Have you always wanted to purchase a certain make and model of vehicle but bristled at the new vehicle price. When you purchase used, that unattainable vehicle may not be in your price range. For instance, you would be surprised how affordable some BMW, Audi and Mercedes models can be when they are just a few years old.
Cons of buying used
While buying used can offer some advantages, there are some reasons why buying used may not be the best choice for you. Here's a look at some potential downsides of purchasing a used vehicle.
1). The vehicle has older equipment
When you are purchasing a used vehicle, then you have to expect that the vehicle will not have the latest equipment in it. That means that you will be driving a vehicle that will have older driver assist, safety and tech equipment.
2). Reliability can be an issue
Depending on the age of the used vehicle, you could be dealing with a car, truck or SUV that can have reliability issues. This could be a major issue if the vehicle is out of warranty. That's because you will have to pay for the repairs yourself if there is anything wrong with the vehicle.
3). Interest rates tend to be higher for used vehicles
When you finance a used vehicle, you are likely to pay a higher interest rate that you would versus financing a new vehicle. This could end up costing you more than you'd expect when it comes to monthly payments.
Which is best for you?
If you are wondering whether buying new or buying used is right for you, be sure to answer these three questions. This can help you decide which type of purchase is best for you.
1). What is your budget?
If you have a budget of under $20,000, then you will find many better choices purchasing a used vehicle since there are not many used vehicles available under that price point.
2). How long do you intend to own the vehicle?
If you are looking to own the vehicle for longer than five years, then you will be better off purchasing a new vehicle. That's because you are likely to save on maintenance and repair costs since the vehicle will be under warranty for the first four to five years of your vehicle ownership.
3). Do you enjoy driving a vehicle with the latest features?
If you like to drive a vehicle with the latest driver assist, safety, and tech features, then you are better off with a new vehicle.
Find the best new or used vehicle at Jessup Auto Plaza
At Jessup Auto Plaza, we have a wide selection of new and used vehicles. Whether you are looking for a brand-new Buick, Chevy, GMC or Cadillac, we have the model that you are looking for. We also have a top selection of quality used vehicles at low prices. Visit us today.