Does It Make More Sense to Buy a New or Used Car?

Walk into a dealership with a fair credit rating, a steady job, and at a minimum, a nominal down payment amount, and you can probably drive off the lot in a shiny, brand new car. Although it is simple enough to purchase a new car in just a few minutes, new car owners often forget that their decisions are final. That means that come rain, sleet, or snow, your car payments on a new vehicle will always be due on the designated date.

Other drivers choose cars like the used Toyota Corolla because Toyota retains its value well and is a top-rated vehicle. While luxury vehicles may be pleasurable to drive, they usually need expensive repairs. In the end, you need to look at how you’re planning to use your vehicle to figure out if a new or used car is a better buy.

What’s Your Vehicle Budget?

Motorists who like to buy their cars outright save money in several ways. First, they have no vehicle finance charges so they don’t get charged interest on their car purchases. This means that they pay for their vehicles up front and have additional assets at their disposal. Then, there’s also the benefit of paying lower auto insurance costs on cars that belong to you instead of to the bank. If you have a smaller budget but you need a car that’s going to last on the road, then you should probably look at used model vehicles. Brand new cars really should only be purchased if you have a large discretionary budget.

How Much Do You Drive?

For drivers who make trips here, there, and everywhere to see family and friends, vehicles with good highway mileage are key. Likewise, commuters generally look for cars that handle curves smoothly and can stop quickly due to bumper to bumper traffic. New cars always come with the latest features that enable drivers to travel in comfort, but used cars can also be quite modern. Ultimately, you really need to test drive every vehicle that you want to purchase so that you know how it feels when you brake, accelerate, and go up and down hills.

How Many Cars Do You Plan to Own?

Both singles and families might have good reason to own several cars. Then again, there are also families, couples, and roommates who share a single car and make it work. If you feel that you are going to need more than one vehicle, look at what you will be paying on a monthly basis. Petrol, tolls, parking, and even trips to the car wash become more expensive the more vehicles you own. Before you buy either a new or used car, determine how much it is going to cost you to maintain your vehicle.

If you’re young, single, and you want a car that you can show off and drive around on the weekends, it’s a better deal to buy a gently used vehicle in most cases. Families with more access to money who need to have a vehicle on the road at all times may be better served by investing in a new car. Simply look at your needs and your ability to handle vehicle maintenance costs before you embark on a new or used car purchase.

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