Top 5 Factors When Choosing Between New and Used Cars - CARFAX

Watch this week’s CARFAX Friday Video to help you decide between buying a brand new car or a used car http://www.carfax.com/blog/video/new-...

Transcription: Buying New vs. Used Cars

In the car market today there are so many options – choosing between buying new or buying used has become an interesting personal decision.

Here are some considerations to help you decide:

#1: Depreciation Downside

Yes, that made to order, tricked out new car is a beauty….but wait! Make sure you fully understand the impact of depreciation on a new car. As soon as you drive the car off the lot the resale value drops dramatically — as much as 40% on some models in the first year. Used cars on the other hand have already depreciated so you won’t over pay for those cars.

#2: Overhead Differences

When budgeting for your car purchase, take a look at the maintenance and insurance cost differences between new and used cars.

Because they are new, new cars have lower maintenance costs and comprehensive new car warranties…while used cars may experience more maintenance costs because of age and mileage.

However, used cars have lower insurance costs because they are older and cost less.

It’s worthwhile doing some quick calculations before you decide new or used.

#3: Gadgits, Gizmos and Safety

If you are looking for the latest technology and safety features, clearly, new cars have the upper hand over used cars. However, depending on the age of the used car many of those items exist in some form or another on used cars. Don’t dismiss buying used cars just for glamour and glitz.

#4: Who knew

Buying used today is a whole new ballgame. Manufacturers are backing up their products with pre-owned certification programs and comprehensive warranties. (Read our guide on Certified Pre-owned Cars.)

And now you can just ask for a Carfax Vehicle History Report wherever you shop for used cars. Just say show me the Carfax you’ll instantly see information about a cars past gathered from more than 91,000 sources to help you find the car you want and avoid the one you don’t.

#5 Financing

It’s true, there are incredible new car financing deals available – like extremely low interest rates for the most credit worthy buyers. But a word to the wise…lower payments stretched out over a long term can still add up to a lot of interest cost.

Make sure you know every detail of your loan terms and stick to your budget!

Parting Words

The good news is that buyers have wonderful choices – there are plenty of quality new and used cars for everyone. And now you’re better informed to help you choose between buying new or buying used.