Is it Better to Buy a New or Used Car?

Is it better to buy a new or used car? It’s not always as simple as how much money you have to spend up front. There are other things you need to consider in Ridgeway, like depreciation, gas mileage, repair costs, and warranty coverage. We want you to make informed decisions, so we’ve put together the useful guide below.

Is It Better to Buy a New or Used Car if You’re on a Budget?

What if your budget is tight? Is it better to buy a new or used car? The answer might seem obvious, since the sticker price of a used car is often much lower than that of a new one. But many Martinsville car shoppers have sometimes found that buying used isn’t always the most economical choice. Here are some of the costs beyond the sticker price that you should take into account:

Pros of Buying a New Car

• Interest rates – Loans on used cars generally have higher interest rates than those on new cars. So, payments may not be that much lower than a new car.
• Gas mileage – Newer cars generally have better gas mileage as automakers seek to improve fuel efficiency, making them well-suited for the typical Reidsville, NC commute. A car’s performance will also decline over time, decreasing fuel efficiency in used vehicles.
• Repairs – Newer cars normally need fewer repairs than used cars and are covered under a warranty.

Cons of Buying a New Car

• Depreciation – New cars lose their value much more quickly than used cars. You’re far less likely to find yourself owing more on the car than what it’s worth if you bought it used.
• Higher Cost – The sticker price, down payment, and monthly payment will all be higher on a new car vs. used.

Pros of Buying a Used Car

• Upfront cost – Used cars usually have a lower purchase price than their new counterparts.
• Depreciation – Used cars don’t depreciate as fast as new cars

Cons of Buying a Used Car

• Maintenance cost – Used cars incur more repairs and cost more to keep running on our Danville roads.
• Warranty coverage – Used cars aren’t covered by warranty unless they’re certified pre-owned.
• Interest rates – Used cars incur higher interest rates on loans.

New Cars vs. Used Cars – Warranty Coverage

A new car will always come with a warranty. This often isn’t the case with used cars:

• New cars – New cars always come with a warranty.
• Used cars – Usually only late models are still under warranty and may not have much time remaining on the warranty, depending on how old the car is.
• Certified pre-owned cars – Certified pre-owned cars are used, but they also come with an extended warranty that is tacked on after the original warranty expires.

Check Out the New and Used Cars at Gunter CDJR Martinsville

So, is it better to drive a new or used car in your case? Either way, we have a wide selection of both and you are welcome to come and take a test drive. And, if you’d like read more buying tips, check out our posts on how to improve your credit score and whether extended warranties are worth it. We’re just down the road from Reidsville, NC. So, drop by or contact us today!