Is It Better to Buy a Used or New Car?

Buying a car is a huge decision that warrants a lot of thought and research. There are many things to consider when buying a car, including whether it's best to purchase a new or used car.

There are pros and cons to buying either a used or new car. Each option has benefits that some may find important. Whether or not a person decides on a new car or a used car depends on things like the money he or she wants to spend, where he or she wants to purchase the vehicle and the type of vehicle being purchased.

Buying a Used Car
One main benefit of buying a used car is that the initial cost is going to be much cheaper, even with more expensive types of vehicles. Many people choose to buy used in order to get a specific vehicle that would be much more expensive were he or she to buy it new. It may also be easier for those with poor credit or a smaller down payment to purchase a used car and any financing needed could potentially be much easier to get. However, there are other costs to consider when buying a car that have nothing to do with the car's purchase price.

While used cars are generally cheaper initially, someone buying one may end up spending a lot on repairs and part replacements once he or she has the vehicle because they are older and have had previous owners. It's important to get a car's full history before purchasing.

Another thing to consider when buying a used vehicle is that a person with a used car may end up needing to get another car sooner than if he or she would have bought a new vehicle. Knowing that the previous owner of a used car took good care of it, along with the car's history, can help ensure that a used car will last awhile and not end up costing too much in repairs.

Buying a New Car
In many cases, choosing to buy a new car will cost more than if a person bought used. The type of car it is determines the cost and whether or not a used version would offer significantly less cost to the buyer. Due to the expense, most people need to take out a sizable loan, have a large down payment or both in order to buy a new car. Financing for a brand new car can be much harder to get than it would be for a used one.

Although a new car will cost more up front and the person who bought it will likely be making car payments longer than someone buying used, there are monetary benefits to buying new. A new car won't require as many repairs and replacement parts as a used car until much later, and a durable, long-lasting car bought new will offer an even longer time without repairs. A person who buys a new car will most likely have the vehicle longer and may even be able to sell it for more once he or she is ready for another vehicle. When it comes down to buying a used or new car, it's important to look at all of the factors involved and make a decision based on a person's personal situation, finances, credit and future plans.