New vs Used Car

Buying a New vs. Used Car? The Reasons To Buy New or Used
Outside of a home, a car is often the biggest purchase decision that consumers can make. While it’s split up by convenient payments, a new car can cost a significant sum, and that can mean years of monthly car payments. A used car, on the other hand, can cost significantly less, though it also leaves your options up to the serendipity of the used car market.

For many, the decision often comes down to price. Deciding between a new vs. used car can be a complicated process. After all, with a new car, you can get exactly what you want in a convenient package that is ready to hit the road for years on end without issue. But buying used could save you a significant sum, and that’s one of the main reasons to buy a used car over a new one.

Sure, there are disadvantages of buying a used car — namely that you’re getting someone else’s previously owned vehicle — but that’s also what can make it a great financial decision. Besides saving money, you’ll have more money to go around when buying a used car. In fact, since your money goes farther in the used car market, you can often get a significantly better car used than you would be able to afford new.

Here’s what to keep in mind if you’re debating between buying a new or used car.

Why Buy New

While a new car will always cost you significantly more than the same car used, it can be worth it to buy a new car over a used one. The new car often comes with better perks that you won’t necessarily get with a used vehicle — things like a multi-year warranty and roadside assistance can save you a significant amount if you have car trouble or a breakdown at some point, all while providing an easy path forward as you bring your new vehicle in for a complimentary fix.

With a new vs. used car, you may also qualify for 0% financing and other financial perks that can help make that car more affordable than some kind of lump-sum payment. Indeed, with some offers, you may be able to go years without having to put any money into your new vehicle, and that can be ideal if you’re not finding what you need or want on the used market.

New means being able to pick all the customizable features to suit your exact need, as well as nailing down that perfect color and the ideal spec that will be delivered. And because it’s new, you won’t need to put away as much to take care of those repairs and other maintenance issues since that bumper-to-bumper warranty will often take care of it all.

All told, buying a new vs. used car tends to be easier and filled with less work than trying to buy used. That’s because after setting your budget and identifying the car that works for your needs, you can customize that new car online or head over to the dealership to see what they have in stock for you. A used car, by comparison, is a take it or leave it proposition. If the color isn’t quite right or something else isn’t working for you, it’s on to the next vehicle.

Why Buy Used

The biggest reason to buy a used car vs. a new one is that used vehicles are cheaper. They’ve already depreciated about 20% in the year after it rolls off the lot, and that means a used car will hold its value better over time than if you were to have bought the same vehicle new. If you decide to sell that used car within the next couple years, you’ll likely be able to get about as much as you paid for it, and that can help protect you from making a bad financial investment. Especially if you tend to keep cars for only a few years, buying a slightly used vehicle can help you recoup more of that money on the backend.

On the frontend, depreciation also means that you can buy a like-new car that’s significantly cheaper than its new counterpart. You may even save on insurance since insuring an older car — even a year or two old — can be significantly less than insuring that same vehicle new. If the price of the new vs. used car is similar, check out the financing options to see which may be the better buy. It’s rare, but better financing deals on a new car that’s only a bit more expensive than its used counterpart could make that new car the better buy — it all depends on the price and the financing.

The last thing to consider about new vs. used cars is the down payment. Putting more money up front for a used or new car can help you qualify for better financing options, and that’s just like putting more money in your pockets.

If you’re wondering if it’s better to buy a new or used car, come see us at Otto’s MINI in West Chester, PA. We carry both new and used cars, and our generous financing options means that it’s easy to get the car you need at a price that works for you. View our availability today!