Should you buy a new car… or should you buy a used car? The answer is: It depends. Sorry.
Let’s look at some of the things that may help you make your decision.
This could be a great used car...right? |
New cars today do have very impressive warranties. And, quite frankly,
new cars built today are built much better than they were a generation
ago. But, used cars also come with
warranties. Sometimes it’s the remainder
of the hefty warranty from when it was new, and other times you can purchase an
additional warranty for used cars.
Used cars are always cheaper than new cars… in a perfect world. But, if you’ve learned anything about the
economy in the past few years… things aren’t always what they seem. Interest rates on new cars can be quite low
right now, sometimes even 0%. Interest
rates on used cars are almost never as low as new, which could mean both a
higher payment each month, and a higher total cost of the car at the end of the
loan.
New cars are typically in top condition, and your risk of something going wrong should be relatively
low. However, with so many manufacturers
offering pre-certified used cars, the risk
of trouble with many used cars is also relatively low.
On a strict apples-to-apples comparison, a good used car will almost
always be the better financial deal.
But, according to bankrate.com, if you expect to hang onto a car longer
than most, and are looking for a more robust warranty, a new car may make more
sense. BankRate, Edmunds, and Cars.com all
have great tools to help you through the process.