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Buy a New or Used Car?

0 Comments 🕔22.Mar 2017

New Or Used?

Buying a pre-owned car or truck has never been more popular–or prudent. The reason: there is a huge pool of 2-3 year old, well-maintained vehicles on the current market, (many returned from leases) with an average price less than half a new car. Furthermore, vehicles have generally become more reliable, with the typical vehicle life-span at its highest point in history.

If the ‘pros’ of a used car outweigh the ‘cons’, now consult our general ‘Tips When Buying Pre-owned’.

New Car Pros

Full factory warranty
No potential abuse or surprises
Lower financing rate, generally
Full range of leasing options
Lemon Law coverage
That authentic new car smell
You can get –and order –exactly what you’re looking for

New Car Cons

Higher price, higher monthly payments
Rapid depreciation in the first few years of ownership. The exception is very high demand vehicles, in short supply. New car buyers absorb the bulk of a vehicle’s depreciation.
Less Price Variation between same make and model.

Used Car Pros

Lower price, lower monthly payments
Major depreciation hit has already occurred. Many (not all) new cars depreciate up to 50% of their current value in the first 4 years, with a rate of 10% or less in depreciation after that point.
More price variation between similar makes and models.
Even greater choice: all new vehicle entries, plus 8-10 more years of products available.
Online pre-owned car shopping has eliminated the traditional ‘used car’worries: the time-consuming hassle of negotiating with a dealer or classified seller, and the risks with no mechanical certification or warranty protection.

Used Car Cons

Greater risk: private sellers and many dealers will rarely offer the assurance of a strong warranty.
Hidden past unknown-you inherit the ‘wear and tear’ of unknown drivers.
Generally, higher financing rate, less factory-subsidized financing deals-although that is changing.
Limited leasing options
No ‘Lemon Law’ coverage. Take advantage of Carfax’s Lemon Check at to prevent buying a lemon or salvaged car.

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