Don’t be quick to make decisions

Most people will immediately assume that buying a used car is the most cost-efficient way of obtaining a car – but that’s not necessarily true at all. Depending on your preferences and finances, buying new could be the most cost-efficient option for you. There is an estimated 20 million new cars being sold every year for the last three years, so it’s definitely worth a second look.

People who are always down to buy used cars are usually the ones on an extremely limited immediate budget. A wise man once said, “I am not rich enough to buy cheap things” (at least he seems wise, we don’t really know who ‘he’ is). Meaning, it ends up being exceedingly expensive (not to mention exhausting) to continuously repair something that only keeps breaking down, especially when it keeps breaking down due to no fault of your own but rather because of a previous owner.

Also, keep in mind that 27% of those 20 million new cars that are bought every year are actually leased, making that a whopping 5.4 million leased cars a year. The trend here seems to be that people who lease are usually those that like a change every couple of years, in addition to spending less comparative to buying.

So, what are the pros to buying a used car?

  • You can get a luxury brand car for cheap
  • You get to pay lower tax and insurance than a newer model
  • You don’t have to worry about your car going down in value after the first year

And let’s hear the cons

  • You’re going to have to spend a bunch of time researching, test driving, and searching for a car you like without an excessive amount of miles on it.
  • You’re pretty much buying someone else’s problem here – the person selling is selling for a reason
  • If you’re taking out a bank loan, interest rates are higher on used cars than new cars
  • Older models are inherently less technologically updated with safety features as well as comfort features that come standard with newer models

What about new car buying pros?

  • Tech and safety features are up to date and readily available
  • Full warranty
  • Lower interest rates on loans
  • Incentives and rebates only apply to new cars
  • If you don’t want to commit to a car and are looking to lease, you can only lease a new car
  • You get to walk into your car and feel #sofreshsoclean

This seems suspiciously biased. What are the cons to buying a new car?

  • The value of your car goes down pretty quickly after the first year if you’re planning to sell it later on
  • Insurance is more expensive
  • Taxes are higher
  • If you’re looking to lease a new car, you don’t get to own you vehicle at the end of your lease and have to give it back at the end of your payments

Basically…

Both used cars and new cars have their own appeal and offer their own benefits, as well as their own drawbacks. Make sure to evaluate the things that matter most to you and then decide whether you should go used or go new.

If you decided getting a new car is your cup of tea, then check out Carvoy’s new car rates.