Should I Buy A New Or Slightly Used Car?
However, you have the option to purchase a certified used car. A certified used vehicle has been tested and resold by the manufacturer and may even come with a warranty. The increasing availability of certified used vehicles also provides an incentive to buy used vehicles. Increased fuel efficiency and lower emissions: Thanks to Big Brother, cars are once again becoming largely more economical and at the same time more powerful. Diesel engines are cleaner than ever, and options in the hybrid and EV segments are also growing if that’s your thing. Latest gadgets: The newer the car, the more modern the geek technology packaged in it.
A list of advantages and disadvantages that describes the advantages of choosing one of the routes. Bankrate was founded in 1976 and has a long history of helping people make smart financial decisions. We have maintained this reputation for more than four decades by demystifying the financial decision-making Ford Dealership process and giving people confidence in the next steps. Although we adhere to strict editorial integrity, this publication may contain references to products of our partners. If you’re buying a used car, you may want to set aside a little money each month to cover any car repairs.
Compare this to buying a used car, which may not be as reliable as a new one due to its age. These repairs are probably not covered by a warranty, as would be the case with a new car. For your convenience, we have included certain links to third party websites on our website. Please note that Santander Consumer USA does not endorse any services or products provided by such third parties and is not responsible for the content, links, privacy or security policies on their websites. Many buyers of “sophisticated” new cars are expected to opt for a used vehicle rather than a new one.
These built-in cost savings should be taken into account, where appropriate, in the final price analysis. To do this, check the dealer’s stock levels for the CPO vehicle you are looking for. Each dealership uses its own jargon when it comes to second-hand options, so explore it online before heading to the showroom.
There are also more hybrid options that can reduce the amount you spend on transportation each month. In addition, the improved technology can make it easier to connect your smartphone, listen to music or find your way around with GPS. Depending on the model, your insurance rates may be lower for a used car than for a new one. One reason for this is that it doesn’t cost as much to replace an older model as it does to replace a new one. Although you won’t find interest-free loans for used cars, you can still find good financing options through your local bank or credit union.
Financing: Banks offer lower financing rates for new vehicles because the vehicles are inherently worth more and are not yet affected by depreciation. Keep in mind that if the lower APR still applies to a larger sum, your payments or total cost may still be higher. Insurance rates: As with financing, insurance rates are affected by the age of a car, but in this case, the used vehicle tends to be cheaper. A little research before buying will save you from the crash of insurance stickers, no matter which vehicle you choose. Choosing a used car instead of a new one can save you a lot of money in several ways.
However, if you can balance it, try to find a car that is at least two years old. Cars lose a third of what they cost new ones after just 18 months. If you’re in your early twenties and pay high insurance rates because of your age, you may be able to save money by buying and insuring a used car instead of a new one.
And most cars will lose another 10 percent in value in the first year. That’s a 30 percent drop in value in the first year of ownership. Bankrate.com is an independent publisher with advertising support and comparison service. We will be compensated in return for placing sponsored products and services or for clicking on certain links on our website. Therefore, this remuneration may affect how, where and in what order products appear within the offer categories.
Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content that helps you make the right financial decisions. The content created by our editorial team is objective, factual and is not influenced by our advertisers. That depends on the make and model of the car, along with other factors such as mileage.
In 2018, a Chevrolet Tahoe LT with all-wheel drive sold for around $56,500. A 2017 Tahoe purchased as a CPO vehicle could be found for around $51,500. It looks the same; it drives the same; It might even smell the same, but it costs almost $5000 less. A Honda Civic is a great entry-level car, and the same theory of the one-year-old model and the same generation works in your case as well. In 2018, a new Civic EX version had excellent value at an average transaction price of about $23,500. In contrast, a 2017 EX used with the same equipment could be found at a retail cost of $21,500.