New or used? It’s the all-important question car buyers find themselves asking, and the answer is anything but straightforward. Each option has its set of pros and cons.
If you’re considering a new car, here are a few questions you may need to ask yourself before you commit.
1. What do your finances look like?
Manufacturers often offer incentives for those who buy a car new, including rebates or financing at a discount. If your credit is good, you’ll likely be able to take advantage of these incentives to help you make your down payment on a new car.
If your credit is less-than-average and you aren’t eligible for any specials, you should take a larger down payment into account if you choose a new car.
2. How do you feel about maintenance costs?
New cars lack a history with previous owners and potential accidents, and this could mean that your maintenance costs will be lower right off the bat. A new car also comes with a warranty to help protect you from these costs for a time.
Before you decide on a new or used car, consider how much you could be spending on maintenance both in the short and long terms. If you decide to go with a new car, make sure you understand the details of your warranty.
3. Do you mind depreciation?
The value of a new car depreciates significantly as soon as it’s driven off of the lot. This means that a new car won’t ever be worth what you paid for it.
4. Which features matter most to you?
New cars usually have the most up-to-date features. If the latest safety features, such as environmental protection or tech updates, are high on your priority list then a new car may be your best bet to get everything you’re looking for.