Buying New vs. Used

Hands Holding Car and Money
 

Milledgeville drivers aren’t always sure whether they should buy a new or used car. Used cars do cost less than new cars to buy. But new cars are also under warranty and don’t require so many repairs. So, which should you buy? We want you to make informed decisions, so we’ve put together the buying new vs. used cars comparison below.

 

 

Buying New vs. Used Cars – Cost

The sticker price on used cars is typically significantly lower than that of used, there’s no denying that. But does that mean that used cars are always the most economical choice for your commute? Not necessarily, especially when you take into account the cost of maintenance and depreciation. Here are some factors to consider before you buy your next car:

Advantages of Buying New

  • Interest rates – Loans on used cars generally have higher interest rates than those on new cars. So, payments may not be that much lower than a new car.
  • Gas mileage – Newer cars generally have better gas mileage as automakers seek to improve fuel efficiency, making them well-suited for the typical commute. A car’s performance will also decline over time, decreasing fuel efficiency in used vehicles.
  • Repairs – Newer cars normally need fewer repairs than used cars and are covered under a warranty.

Disadvantages of Buying New

  • Depreciation – New cars lose their value much more quickly than used cars. You’re far less likely to find yourself owing more on the car than what it’s worth if you bought it used.
  • Higher Cost – The sticker price, down payment, and monthly payment will all be higher on a new car vs. used.

Advantages of Buying Used

  • Upfront cost – Used cars usually have a lower purchase price than their new counterparts.
  • Depreciation – Used cars don’t depreciate as fast as new cars

Disadvantages of Buying Used

  • Maintenance cost – Used cars incur more repairs and cost more to keep running on our roads.
  • Warranty coverage – Used cars aren’t covered by warranty unless they’re certified pre-owned.
  • Interest rates – Used cars incur higher interest rates on loans.

Buying New vs. Used Cars – Warranty Coverage

A new car will always come with a warranty. This often isn’t the case with used cars:

  • New cars – New cars always come with a warranty.
  • Used cars – Usually only late models are still under warranty and may not have much time remaining on the warranty, depending on how old the car is.
  • Certified pre-owned cars – Certified pre-owned cars are used, but they also come with an extended warranty that is tacked on after the original warranty expires.

Get Your Next Car at Five Star Automotive Group

So, have you decided yet between buying a used or new car? There is one other thing you should consider – compare our new vehicle specials with our used vehicle specials. Either way, we’ll be happy to connect you with the car that’s just right for you. We have several convenient locations, like the one in . So, drop by or contact us today.

 

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