Purchasing a car is one of the most significant decisions that many people make in the course of a year. As one wrong choice can cost you a significant amount of money, it’s important that you understand what you’re getting yourself into. That’s why we’ve put together this guide that will help you decide whether a new or used car is better for you.
The main benefit to buying a used car is that you will spend less money up front. As brand new cars depreciate in value at a much faster rate than used cars, buying used is generally more cost-efficient.
In fact, new cars are said to depreciate 20% of their value the minute that you come into ownership of the vehicle.
This is where your choice starts to get trickier. Although buying used is the more cost-efficient option up front, it doesn’t necessarily mean that it will save you money in the long run. If you happen to select a used vehicle with a lot of problems, you’ll have to sink quite a bit of money into it to fix it up.
New cars also have the benefit of having impressive warranties attached to the purchase. However, an in-between option exists. Many dealership offer certified pre-owned vehicles that have been inspected and often come with a warranty.