New or Used? Which car is right for you?

It used to be that hip and trendy people bought expensive hip and trendy new wheels, and pragmatic folks chose economical ones. However, recent trends have made the old differences less pronounced. Even though finding a car loan to buy either a used or new vehicle is easy, deciding which one to buy is another story.

Easy access to auto loans

Once upon a time in a land called Detroit, new cars meant zero headaches in terms of auto upkeep. But numerous factors have narrowed the reliability divide. First, new warranty">car warranties have increased in duration and miles. Second, demand for more reliable cars has raised the bar in terms of engineering quality. And third, car servicing has become an industry unto itself for many dealers, allowing them to generate profits by helping to keep your used car firing on all cylinders.

Narrowing price differential

In the past, there was no way to convince a stingy buyer to overlook new car depreciation. However, much more aggressive financing programs have reduced some of the sticker shock. In addition, while some cars have improved reliability, there's no denying that a used car will require higher maintenance costs than its newer counterpart. The overall price differential is no longer a given.

Reliability: a standard feature

No matter which choice you make, you can always find a place to get a car loan. Credit unions generally offer outstanding rates on new or used car loans, but there are plenty of competitive banks, as well. Dealer financing is an option, but car loan rates tend to be considerably higher. Another option is a home equity loan or a home equity line of credit (HELOC). Either option gets you access to cash, and both loans may be tax deductible.

With fewer differences between buying new and used, your decision-making process just got more difficult. But don't worry. When push comes to shove, you'll know what choice is right for you. You'll also know that there are car loans available in virtually as many models as the cars themselves, to make whichever road you take a smooth and safe one.