Guide to Buying a Car Chapter: 1 2 3 4 5
Used or New?
By using your finances to guide your buying decision, you're almost at the point where you can go out and kick some tires. But there are a couple of other questions to answer before turning the ignition key for your test drive. One of the most important is...new or used?
By using your finances to guide your buying decision, you're almost at the point where you can go out and kick some tires. But there are a couple of other questions to answer before turning the ignition key for your test drive. One of the most important is...new or used?
Typically, people who buy new are less concerned with price. Cars depreciate the moment you drive them off the lot, although many higher-end imports and luxury cars tend to hold their values for a longer period of time than their domestic and mid-priced counterparts. But if you like the latest in convenience and on-board technologies, a new car might be the right option for you.
The financial advantages to buying used are plentiful. You'll have a lower purchase price, depreciation rate, and insurance premium. On the flip side, you're more likely to face higher maintenance costs, as warranties begin to expire and parts start to wear out.
A new entry to the automotive world-the hybrid car-is beginning to make its way onto the used car lot. However, the price break between new and used isn't quite so dramatic. In terms of gas savings, some argue that the amount of cash you'll save at the pump offsets the increased price of a hybrid. However, you would definitely be doing your part for the planet by limiting damaging emissions.
There are plenty of arguments on both sides of the fence when it comes to new vs. used. To help you with your decision-making process, list the top five things you want in a car. These should reflect your tastes and can help bring an end the age-old battle.
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