Warranty

New cars have warranties. Your car may come with a bumper-to-bumper warranty, powertrain warranty, and/or other manufacturer’s warranties. These are all great features of new cars that you don’t get when buying used. To add to the benefit, these factory warranties may be transferable. This means that if you sell your new car before the factory warranty expires, the remaining portion of the warranty is passed along to the buyer.

Used cars have no warranty unless you purchase one from a private dealer or third party company after buying your used car. Used car warranties can sometimes be quite expensive and complicated, so research what is offered carefully before making a decision on whether or not to purchase one with your vehicle.

Maintenance

• Used cars often have higher maintenance costs. Generally, used cars have a higher overall cost of ownership compared to new cars. Depending on the age and condition of your used car, you may face expensive maintenance costs that would not be an issue with a new car because it is covered by warranty.
• New cars have a warranty. Most new cars come with a manufacturer’s warranty that covers repairs for several years or miles (typically 3 to 10 years or 36,000 to 100,000 miles). After the manufacturer’s warranty expires, many drivers opt for an extended warranty or service contract that can offset some of the increased maintenance costs associated with owning a used vehicle.
• New cars may have lower maintenance costs than older used vehicles. If the reliability ratings are good for a particular model, then buying newer may mean lower repair costs than buying older. It is important to compare reliability ratings for both new and used models you’re considering since all vehicles don’t perform equally well over time.* New cars will have lower registration fees in most states since they are taxed based on purchase price rather than fair market value.
• Used cars will generally have a lower purchase price than new vehicles because depreciation usually drops more steeply in the first two to four years of ownership when purchasing a new vehicle.* Used cars can often cost less to insure because they are typically valued at less than similar new models depending on their age and mileage.

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Budget

The first thing to consider is your budget. Where do you fall on the financial spectrum? Are you a Warren Buffet, a Donald Trump or are you more like Cady Heron (the teenage protagonist in the movie Mean Girls)? Consider the cost of a new car versus a used one and be realistic about what you can afford.

New cars have higher resale value so they’re worth more in the long run. Used cars allow for greater flexibility in price, but there are additional costs to consider when buying used. If you don’t have money available for repairs and maintenance, then you should focus primarily on new cars. Once you’ve decided on how much money you want to spend and what kind of car will best fit your finances, it’s time to think about where to buy that car.

Loan term

If you take out a longer loan term, you’ll have more time to pay off the car. While this will lower your monthly payment, it will cost you more in interest fees in the long run. If your goal is to build equity in your vehicle quickly and pay it off as soon as possible, then a shorter-term loan is best.

Utility

So we’ve established that the new car smell isn’t worth the extra money you’ll spend on a brand new car with no history. But before you go out and buy a used model, there are still some things to consider.

The first is utility: meaning how much of your vehicle’s value will be retained over time? How long can you expect it to last? How many miles can you get out of it? And what (if anything) will it cost to maintain?

When making this choice you need to think about what kind of driving experience makes sense for your lifestyle. If you’re only planning on using your car for short trips around town, mileage won’t be as big an issue as if you’re planning on doing any long-distance traveling. In that case, it might not make sense to buy an older vehicle with more than 150k miles on it because at some point, something’s going to give out.

Customization

Customization. When you buy a new car, you’re limited by the specs of the vehicle, and it’s more difficult to add aftermarket or custom parts. If your heart is set on customizing your ride, buying used gives you the opportunity to do so for less money. Adding aftermarket parts, such as new rims or a lift kit, typically costs less for a used car than a new one and could even help increase its resale value down the road. On the other hand, adding accessories like these to your brand-new car could end up costing thousands of dollars—and at that point, why not just buy an older model with those features already?

Technology

Technology may be an important factor to you. If that’s the case, then buying a new car might be best for you. New cars are more likely to come with all the bells and whistles in terms of technology, such as GPS, self-driving capabilities and even Apple CarPlay. Technology is increasing rapidly in cars, so if you want to stay on top of it, consider buying new. On the other hand, if you’re not too concerned with the latest technologies and just want a reliable vehicle that will get you from point A to point B safely and efficiently, then buying used might be a better option for you.

Safety ratings

Car safety is a top concern for many car buyers. When you’re buying a new or used car, it’s important to consider your vehicle’s safety ratings.

If you purchase a used car, you won’t know its history. That means the previous owner may have ignored recommended maintenance and repairs or might not have properly reported accidents, which could affect your car’s ability to withstand future damage. If you buy a new car, it should be in pristine condition so long as the dealership has handled any necessary recalls and scheduled maintenance services before putting it on the lot for sale.

Most new cars come with advanced safety features such as lane departure warnings, blind spot monitors and rear cameras. However, this technology is still in its early stages so some older models might not come with these features. Many popular cars also offer optional advanced safety packages that can be added on at an extra cost.

Decide which vehicle safety ratings are most important to you when considering whether to buy a new or used car.

You need to do your research when looking at new vs. used cars.

You need to do your research when looking at new vs. used cars. First and foremost, decide on a budget.

There is no set rule. You can find a new car for the same price as the used one and vice versa.

A big pro of buying a new car is that you get to pick the color, options, mileage and everything else you want in the vehicle. Along with that, you also get to enjoy all the latest technology that comes along with it including safety features such as backup cameras (which will be standard in 2018), blind spot monitoring and parking assist.

Last but not least, if you buy a car with low mileage and take good care of it (routine maintenance), then there is no reason why this shouldn’t last for 10 years or more before another payment would be required.

Gone are those days when people would buy used cars because they wanted to save some money from their pockets now most people prefer buying used cars because they don’t like paying high depreciation costs of new ones and often there are advantages of buying certified pre-owned cars which have been thoroughly checked by technicians before being placed on sale again almost like buying a brand-new vehicle at half price!Warranty

New cars have warranties. Your car may come with a bumper-to-bumper warranty, powertrain warranty, and/or other manufacturer’s warranties. These are all great features of new cars that you don’t get when buying used. To add to the benefit, these factory warranties may be transferable. This means that if you sell your new car before the factory warranty expires, the remaining portion of the warranty is passed along to the buyer.

Used cars have no warranty unless you purchase one from a private dealer or third party company after buying your used car. Used car warranties can sometimes be quite expensive and complicated, so research what is offered carefully before making a decision on whether or not to purchase one with your vehicle.

Maintenance

Used cars often have higher maintenance costs. Generally, used cars have a higher overall cost of ownership compared to new cars. Depending on the age and condition of your used car, you may face expensive maintenance costs that would not be an issue with a new car because it is covered by warranty.

New cars have a warranty. Most new cars come with a manufacturer’s warranty that covers repairs for several years or miles (typically 3 to 10 years or 36,000 to 100,000 miles). After the manufacturer’s warranty expires, many drivers opt for an extended warranty or service contract that can offset some of the increased maintenance costs associated with owning a used vehicle.

New cars may have lower maintenance costs than older used vehicles. If the reliability ratings are good for a particular model, then buying newer may mean lower repair costs than buying older. It is important to compare reliability ratings for both new and used models you’re considering since all vehicles don’t perform equally well over time.* New cars will have lower registration fees in most states since they are taxed based on purchase price rather than fair market value.

Used cars will generally have a lower purchase price than new vehicles because depreciation usually drops more steeply in the first two to four years of ownership when purchasing a new vehicle.* Used cars can often cost less to insure because they are typically valued at less than similar new models depending on their age and mileage.

““

Budget

The first thing to consider is your budget. Where do you fall on the financial spectrum? Are you a Warren Buffet, a Donald Trump or are you more like Cady Heron (the teenage protagonist in the movie Mean Girls)? Consider the cost of a new car versus a used one and be realistic about what you can afford.

New cars have higher resale value so they’re worth more in the long run. Used cars allow for greater flexibility in price, but there are additional costs to consider when buying used. If you don’t have money available for repairs and maintenance, then you should focus primarily on new cars. Once you’ve decided on how much money you want to spend and what kind of car will best fit your finances, it’s time to think about where to buy that car.

Loan term

If you take out a longer loan term, you’ll have more time to pay off the car. While this will lower your monthly payment, it will cost you more in interest fees in the long run. If your goal is to build equity in your vehicle quickly and pay it off as soon as possible, then a shorter-term loan is best.

Utility

So we’ve established that the new car smell isn’t worth the extra money you’ll spend on a brand new car with no history. But before you go out and buy a used model, there are still some things to consider.

The first is utility: meaning how much of your vehicle’s value will be retained over time? How long can you expect it to last? How many miles can you get out of it? And what (if anything) will it cost to maintain?

When making this choice you need to think about what kind of driving experience makes sense for your lifestyle. If you’re only planning on using your car for short trips around town, mileage won’t be as big an issue as if you’re planning on doing any long-distance traveling. In that case, it might not make sense to buy an older vehicle with more than 150k miles on it because at some point, something’s going to give out.

Customization

Customization. When you buy a new car, you’re limited by the specs of the vehicle, and it’s more difficult to add aftermarket or custom parts. If your heart is set on customizing your ride, buying used gives you the opportunity to do so for less money. Adding aftermarket parts, such as new rims or a lift kit, typically costs less for a used car than a new one and could even help increase its resale value down the road. On the other hand, adding accessories like these to your brand-new car could end up costing thousands of dollars—and at that point, why not just buy an older model with those features already?

Technology

Technology may be an important factor to you. If that’s the case, then buying a new car might be best for you. New cars are more likely to come with all the bells and whistles in terms of technology, such as GPS, self-driving capabilities and even Apple CarPlay. Technology is increasing rapidly in cars, so if you want to stay on top of it, consider buying new. On the other hand, if you’re not too concerned with the latest technologies and just want a reliable vehicle that will get you from point A to point B safely and efficiently, then buying used might be a better option for you.

Safety ratings

Car safety is a top concern for many car buyers. When you’re buying a new or used car, it’s important to consider your vehicle’s safety ratings.

If you purchase a used car, you won’t know its history. That means the previous owner may have ignored recommended maintenance and repairs or might not have properly reported accidents, which could affect your car’s ability to withstand future damage. If you buy a new car, it should be in pristine condition so long as the dealership has handled any necessary recalls and scheduled maintenance services before putting it on the lot for sale.

Most new cars come with advanced safety features such as lane departure warnings, blind spot monitors and rear cameras. However, this technology is still in its early stages so some older models might not come with these features. Many popular cars also offer optional advanced safety packages that can be added on at an extra cost.

Decide which vehicle safety ratings are most important to you when considering whether to buy a new or used car.

You need to do your research when looking at new vs. used cars.

You need to do your research when looking at new vs. used cars. First and foremost, decide on a budget.

There is no set rule. You can find a new car for the same price as the used one and vice versa.

A big pro of buying a new car is that you get to pick the color, options, mileage and everything else you want in the vehicle. Along with that, you also get to enjoy all the latest technology that comes along with it including safety features such as backup cameras (which will be standard in 2018), blind spot monitoring and parking assist.

Last but not least, if you buy a car with low mileage and take good care of it (routine maintenance), then there is no reason why this shouldn’t last for 10 years or more before another payment would be required.

Gone are those days when people would buy used cars because they wanted to save some money from their pockets now most people prefer buying used cars because they don’t like paying high depreciation costs of new ones and often there are advantages of buying certified pre-owned cars which have been thoroughly checked by technicians before being placed on sale again almost like buying a brand-new vehicle at half price!