Is it Better to Buy a New or Used Car?

Are you in need of a vehicle upgrade?

If so, you’ve likely debated whether you should opt for a new vehicle or a used vehicle. One option isn’t inherently better than the other, so it all comes down to what you’re looking for in a vehicle and the type of ownership experience you desire. To help you make your decision, the team at North Bay Cadillac has put together this guide in which we compare new vs. used cars, in terms of their pros and cons. Read on to find out which type of vehicle best suits your Bayside lifestyle.

The Pros and Cons of New vs. Used Car

New Car Pros

• Latest In-Cabin Features: When you finance or lease a new car, you get access to the newest, state-of-the-art features on the market. Because automotive technology is constantly changing and being updated, a vehicle that’s even a few years old can be technologically outdated.
• Better Mileage Ratings: Nowadays, a top priority for many automakers is manufacturing vehicles that are ultra-efficient. Many automobiles now have turbocharged motors that are designed to provide a greater fuel economy.
• Full Warranty Coverage: Most new vehicles are protected by bumper-to-bumper and powertrain warranties that cover most of the car's components for a certain amount of years and miles.

New Car Cons

• Higher Price Tag: New vehicles are much more expensive than used and certified pre-owned (CPO) vehicles. Also, once the car’s warranty expires, its technological features can be expensive to fix and maintain.

Used Car Pros

• More Affordable: Manhasset drivers who are shopping on strict budgets can save a lot of money when they purchase a used car.
• Slower Rate of Depreciation: As soon as drive a brand-new car off the dealership lot, its value starts to decline. Did you know, a significant portion of a car’s value is lost in the first few years of ownership? When you opt for a used car, it has already undergone a bulk of its depreciation.
• Less Chance for Negative Equity: Negative equity arises when drivers owe more on their car loan than what the car is worth. If you finance a used car, you’ll likely have a smaller car loan, and it will lessen the chance of you becoming “upside down” on the loan.

Used Car Cons

• Higher-Priced Financing: Used-car loans tend to have higher interest rates, which leads to higher monthly payments. On the other hand, since the price of the vehicle will be lower, the loan term will be shorter.
• Higher Monthly Payments: Lenders tend to 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.