Is it Better to Buy a New or Used Car?

If you’re looking to upgrade your ride, you might be wondering, “Is it better to buy a new or used car?” Neither type of car is inherently better than the other, but one is likely a better fit for you, depending on what you want from your ownership experience. Below, we compare new vs. used cars to help Wheeling drivers decide which makes more sense for them. Read on to find out how their advantages and disadvantages compare!

A new car will feature the latest technology. Because automotive technology updates frequently, even a vehicle that’s just a few years old can be considered technologically outdated. New cars also have the greatest fuel economy with new mechanical features that help drivers save on gas in Moundsville. New vehicles are also covered under warranty – usually with bumper-to-bumper and powertrain warranties that take care of any components you might worry about.

The disadvantage of purchasing a new vehicle is that they come at a far higher cost than a used or CPO model. You’ll also be taxed on the price you pay, and probably have higher repair costs at the end of the warranty period due to the technological advancement of the model.

Choosing a used model is more cost-effective not only at the time of purchase, but also when you are paying for auto insurance and your taxes. They also have slower rates of depreciation. The value of a new car begins to diminish the moment you leave the dealership. Used cars have already taken the initial depreciation hit, and so lose value at diminishing rates as they continue to age. You also can minimize your chance for negative equity, meaning you owe more on your car loan than what it’s worth. So, in the case that a vehicle is lost or irreparably damaged, you could get stuck paying on the auto loan, even though you can’t drive the car. Financing a used car usually means you have a smaller car loan, so it’s less likely that you’ll end up “upside down” on the loan.

The disadvantage to a used model is the higher-priced financing. Lenders often charge higher interest rates on used-car loans, which leads to higher monthly payments. On the flip side, the price of the vehicle will be lower, so the loan term will also be shorter.

Whether you’ve decided on a new or used car, Straub Nissan has you covered. Our finance team will work side-by-side with you, to secure a loan that works for you. To get started, you can apply for financing online or use our payment calculator to estimate your monthly payments. Contact us any time if you have questions about financing your next Steubenville vehicle, or stop by for a visit in Triadelphia!