Should You Buy a Used Car or a New Car?

Should You Buy a Used Car or a New Car?

Should You Buy a Used Car or a New Car?

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You don’t want to make a costly mistake. Our car shopping guide will help you understand the pros and cons of buying a new car or buying a previously owned vehicle that is new to you.

Used Cars Are Cheaper

According to Kelly Bluebook, the average price of a non-luxury new vehicle has reached $43,072. CarGurus estimates the average preowned vehicle sells for $30,000. Purchasing a used vehicle can save a lot of money. A savings of $10,000 per car over the purchase of 5 -10 cars in your lifetime could mean an extra $50,000 - $100,000 in your pocket.

Used Cars Provide Better Value

You have heard, “The car is worth half what I paid for it when I drive it off the lot.” Cars experience their most significant depreciation within the first couple of years. A used car will retain its value closer to what you paid for it, suitable for resale value.
A two or three-year-old vehicle will have most of the same features as the new model with the benefit of a reduced price. The car may still be under warranty since many bumper to bumper warranties are three years and powertrain warranties are usually five years. 

New Cars Are More Reliable

A new car comes straight from the manufacturer. You know everything is in working order, and the manufacturer will warranty any factory defects. Often you will not have the entire history of a used car, and the vehicle may have had repairs or accidents not reported anywhere.

New Car Shopping Is Easier

You know you can pick the make, model, and features you need, and the salesperson does the work to order the vehicle for you. With a used car, you are responsible for spending hours searching dealerships or online marketplaces to find your preferred vehicle.
The cost of a new vehicle is easier to predict and compare, and manufacturers publicly post a recommended price. However, you may still want to negotiate. Used car prices depend on the condition of the car and the seller’s desired profit and often can’t be easily compared to other vehicles on the market.
It is almost impossible to save enough money for the total purchase price of a car. Installment loans are one option to help make car ownership possible through a manageable payment schedule. Pop into one of our NiceLoans! stores or call us to discuss loan options to get you on the road.
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