The biggest disadvantage of buying a new vs a used car is that you are paying a higher overall price for the vehicle. New cars have a higher price tag because they are usually sold around their market value. You will also need to pay service fees that are added by the dealership.
Although there are more financing options available for new car purchases, you will still need to find a car with a financing option that is affordable for your budget. If you need a loan the new vs used car interest rates are something you should consider before making your purchase.
In general, loans for new cars will offer you lower interest rates than financing a used car. Find a vehicle make and model that falls within your budget and look for a financing option that offers you a low interest rate and affordable monthly payments.
You will have a lot more financing options available when purchasing a new car vs a used car, which means you will need to take more time to shop around for the best loan.
Visiting various credit unions, banks, and credit unions for quotes requires patience but is worthwhile to secure the best terms.
On top of that, your new car will begin to depreciate in value as soon as you drive it off the dealership lot. In fact, some studies have shown that new cars lose approximately 20 percent of their original value in the first year and around 15 percent is lost for each year after that.
This means that the longer you own your vehicle, the less you will get if you ever decide to resell it or trade it in for another car. Buying a used car can be a better option if you want to resell your car in a few years and you want to retain the value a little better.
Continue reading to find out some of the advantages and disadvantages of buying a used car.