How Do New Vehicles Compare To Used Vehicles

August 5th, 2020 by

When you’re shopping for a car, “new or used?” is often the first question on your mind. There are pros to both sides. New cars offer a lot of perks in terms of features, freedom, and even some financial aspects. Used cars can get you big savings, especially when you consider insurance and warranties. Here are some things to consider when deciding if you should get a new car or a used car.

Financial Perks of a New Car

Though it may seem counterintuitive, buying a new car comes with plenty of financial perks. This is especially the case if you’re going for a popular model. Take a new vehicle that’s selling for higher than the dealer’s list price. That suggests that the car has a stronger resale value, and in turn, less depreciation. You’ll find that some brands tend to depreciate at a lower rate and command stronger resale value, thanks to their record of reliability and quality. And that makes a big difference when it comes time to trade in your car.

Buying a new car can also get you better finance rates. Many offers for new vehicles include cash rebates and low-interest financing. That’s something typically only offered to buyers of new cars, so you won’t be able to reap the benefits if you’re going for a used model. Financial institutions also frequently charge a higher interest rate on used car loans. You can sometimes get a full percentage point or even two lower if you’re getting a new car.

New Vehicles Bring the Best Features

If technology and cool features are your things, you might be better suited to a new vehicle. Manufacturers add new technology and other features to vehicles with each model year. These features come as either optional or standard equipment, but either way, they’re there to entice buyers to those new models. Sure, you’re getting a state-of-the-art car when you go for a used model, but it’s state-of-the-art for the year it was made!

New technologies can include safety features just recently offered to the public. They can also just be convenience gadgets, but if you like your tech, you want the newest model out there. Automotive electronics evolve rapidly and constantly. The only way to get a car that’s not outdated is to go for the newest available vehicle. That way, you’ll know you’re getting the most advanced technology, whether that’s for your music or for safety features. New is the way to go for features.

Freedom to Choose the New Car You Want

When you’re looking forward to freedom, you’ll want to check out new models. You’re in charge when you go for a new car. You can consider just about anything in the price range and size class that fits what you’re looking for, choose the color, and opt for the specific features you need or want. Upgrade your audio, add high-tech features, go for leather seats, and more. That’s all possible when you buy a new car.

Don’t see what you’re looking for in the showroom or lot? If you’re buying a new car, a dealer can sometimes even order a car that fits your unique specifications. That’s just not possible if you’re looking for used vehicles. For those that love the freedom of shopping for the car of their exact dreams, new cars are the way to go. You’ll have the freedom to find the precise car you see yourself driving when you shop for new vehicles.

Used Cars Have Their Own Financial Perks

Buying a used car instead of hurrying to the latest model can save you a good chunk of money. Used cars can cost almost half the price of a new car. You’ll also pay off a used car much faster than a new model, which will save you on financing fees.

And that’s just the beginning. When you buy a used car, much of the depreciation has already happened. A new car starts to depreciate the minute you drive it off the lot and continues to depreciate during the months and years you drive it. A used car, on the other hand, has already seen the bulk of its depreciation take place.

Environmental Benefits of Used Cars

Going with a used vehicle can have an impact on the environment. Since a vehicle produces nearly a quarter of its lifecycle’s carbon dioxide from the manufacturing process and initial shipment, buying used will cut down on the carbon dioxide released into the environment.

Save on Insurance When You Buy Used

You need car insurance, but that can often add significant costs. Depending on the model you buy, your insurance rates on a used car may be lower than on a new car. This can have a big impact if, for example, you’re already paying high insurance rates because of your age.

If you get into an accident when driving your new car, your insurance only pays for the car’s value at that time. Since depreciation will have occurred, that leaves a gap between what the vehicle is worth and the price you paid when you purchased it.

You’ll need to get gap insurance to cover the difference between what you paid for your new vehicle and its depreciated value. That raises your insurance premium. But you don’t need that gap insurance when you buy a used car since the depreciation has already happened! Insurance savings on used cars are often significant. This just adds to the overall savings you’ll get from buying a used car.

Warranty Benefits for Used Cars

Another perk of a used car? The availability of warranties. Some used vehicles have part of their original warranty, while other choices give you the option to create a new warranty. Look for an extended manufacturer warranty that offers factory-trained technicians for repairs. You can even use the money you’ve saved to get a warranty covering everything to 100,000 miles or beyond.

Everyone’s unique circumstances will play a role in the decision to buy a new or used car. Take the pros of both into consideration, and then make the best choice for you. At Stan McNabb Chevrolet of Columbia, we’ll work with you to get you in the best car for your needs.