Considerations When Buying A New Or Used Car

Because the average car is purchased somewhere in the range of seven to ten years in the United States, making the right decision about which one you buy is of the utmost importance. One of the first decisions you’ll likely make when you’re in the market for a car is whether you want to go with a new or used car. Whichever direction you pick, there are a lot of factors to consider.

Let’s walk through some of them with you!

Car Insurance Cost

You can’t drive a car off the lot without insuring it, whether that’s new or used, but the amount you’ll pay for car insurance coverage will vary based on whether it’s a new or used car. The amount you’ll pay in car insurance, though, is directly tied to the car’s worth. And because a new car costs more than a used car, your insurance coverage costs on your new car will be more.

Depreciation

One of the most frustrating parts of owning a new car can be how much of its value is eliminated the moment you drive it off the lot. Depreciation typically reaches 20% the moment this happens. However, the more you drive the car, the more it’ll continue to depreciate, which will be felt if you end up trying to sell or trade-in the car. Of course, the used car will depreciate over time and miles will climb as well, but because you didn’t pay the ‘off the lot’ price, it won’t be as large a percentage of your initial purchase price.

Features

While the costs may weigh in favor of buying a used car, new cars are more likely to have new and exciting features that you want to take advantage of. And these features aren’t just novelties or ‘nice to have’ aspects, like stereo or digital gadgets but include safety features that can keep you and your family more protected. It can be hard to put a price on feeling and being more secure in your car, so if that weighs heavy on you, it may be important to buy a new car to get the safest experience possible.

Financing Options

While the cost of the new car may be higher, getting a new car instead of a used car will typically come with more financing options and incentives. Cash rebates, new car loans with great interest rates, and more come into play on the new car lot that are simply not there for used cars.

You have a lot of decisions to make when you’re purchasing a new car, and there’s no right or wrong answer when opting for a new or used car. It comes down to what your preferences are and what you can afford. If you want to find out more and talk through your options, Schechner Lifson can offer you the right guidance. Get in touch with us today to find out more!