First Car Guide

Better to Buy Pre-Owned Car, or New Car?

There are advantages and disadvantages to either choice. Most people would rather have a brand new car with it's new-car smell and latest style, but there are reasons that a new car might not be the best choice. Let's take a look.

Advantages of Buying New

• You get a brand new car with new-car feel and smell
• You get the latest style and technology
• You get the latest safety equipment
• You get a full manufacturer's warranty
• You get Lemon Law protection
• You get lowest loan interest rates, if you qualify
• You get the option to lease
• You may get special manufacturer-sponsored pricing and financing

• Value of a new car depreciates rapidly
• Insurance rates may be higher than used
• Taxes may be higher

Advantages of Buying Used

• You avoid the high first-year depreciation of value
• If you buy almost-new, you may get same styling and technology as new car, at a lower price
• You get price flexibility by choosing between different model years, mileage, and condition
• You may buy "certified" vehicles with inspection and warranty - at higher cost
• You get lower insurance costs than same new model
• You get lower sales tax and personal property tax

Disadvantages of Buying Used

• You buy "as-is" unless some manufacturer warranty remains
• Lemon laws don't apply to used cars
• You may be buying someone else's problem, unless you have your vehicle inspected
• You risk buying a wrecked or salvage vehicle, unless you run a CARFAX Vehicle History Report
• You typically don't have a lease option
• You pay higher interest rates
• You may get fewer safety features

Summary

To summarize, buying a used car can be a better value for your money but it comes with higher risks.

Any used car purchase should include an extensive test drive, an inspeciton by a qualified mechanic, and a CARFAX Vehicle History Report. Also consider buying an extended warranty.

If you're considering an almost-new vehicle, make sure you can't get the same vehicle, new, at about the same price, which can happen if the manufacturer is offering special promotional deals.

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