Is it Better to Buy a New or Used Car?

Are your daily travels around Lexington and Louisville due for an upgrade? There are plenty of questions to consider before acquiring your next vehicle. Should you buy or lease? Should you work with a dealership or a private seller? But, before you get to these steps in the car-buying process, you might still be stuck on an important initial question: Is it better to buy a new or used car? At the end of the day, it all depends on your priorities. In the guide below, we aim to help you make a smart decision by comparing the advantages of new vs. used cars! Read on to learn more with Dan Cummins Auto Group.

New vs. Used Car Differences

Benefits of New Cars

• Modern Technology: Bringing home a new vehicle means you’re getting the very latest technology. If you’ve been driving an older model for a while and you’re craving a modern driving experience with touchscreen functionality, wireless device integration, and other conveniences, you might love getting into a brand-new model!
• Improved Fuel Economy: Efficiency is more important than ever, and new vehicles offer the very best fuel economy ratings as manufacturers work hard to compete and meet the expectations of Cincinnati drivers like yourself.
• Complete Warranty Coverage: Investing in a new vehicle means you’re getting the entirety of the new vehicle limited warranty offered by the manufacturer. 

Potential Setbacks of New Cars

• Costlier: Of course, when you compare new vs. used car options, you’re going to pay more for a new vehicle. You must also factor in taxes on the purchase, as well as the fact that new vehicles tend to have higher insurance rates and annual registration costs.

Benefits of Used Cars

• Budget-Friendly: You’re almost guaranteed to pay less when you buy a used or certified pre-owned vehicle. The sticker price is lower, as are your monthly payments. Plus, insurance rates are typically lower for used vehicles!
• Slower Depreciation: A used vehicle should have already experienced most of its depreciation, and it will lose value at a slower rate moving forward, as well.
• Lower Risk of Negative Equity: With slower rates of depreciation and lower borrowing amounts, used vehicles come with a lower risk of negative equity (owing more money on your loan than your car is worth). 

Potential Setbacks of Used Cars

• Higher Interest Rates: You won’t need to borrow as much money for a used car thanks to the reduced price tag. Bear in mind, however, that lenders often charge higher interest rates on used car loans. You should account for this when you set a price range to shop within. 

Compare New vs. Used Car Options from Dan Cummins Auto Group

So, is it better to buy a new or used car? Hopefully, you can make a confident decision for yourself based on our new vs. used car comparison! Our team has many more car-buying tips and insights to offer. Reach out or stop by in Paris to make a confident upgrade!