New or Used – You Choose

If you need a new car you really have two choices; buy new or buy used.

There is good and bad available in every car you consider. The same goes for new cars or used cars.

New or Used cars

Pros for New Cars

New cars obviously benefit from the fact they are new so they will likely last longer. They also probably come with some sort of factory warranty which means you can rely on free replacement of certain parts for a given length of time (usually tracked in the form of maximum mileage-like 10 years or 100,000 miles from time of purchase.)

A new car probably will get better mileage and offer the most modern safety features. If you are looking for the latest technology coupled with the very best fuel economy a new car might be right for you.

Cons for New Cars

Of course a new car also comes with a hefty price tag. You can finance a new car purchase but you will still need to put a hefty sum of money down and make regular payments for several years before you pay it off.

Pros for Used Cars

If you are so inclined you can find a used car, just a few years old, that gets pretty close to or better than the mileage in the new vehicle and has almost all the same features.

In fact, if you choose your used car carefully you might find one with even more features and even better mileage than the new car you are considering. Since you are paying less for it you can afford to pick a used car with an abundance of things you could not afford to add on your new car. Perhaps a new stereo or a safety feature you want like side curtain air bags.

Cons for Used Cars

Unfortunately, even though you paid less for it, your used car will suffer from higher interest rates. Bankers know that your used car will not carry the same resale price as a new car which means you are a greater risk for getting rid of it before you pay it off. The more risk they incur the more they want to charge you for taking on that risk.

A new car will likely suffer massive depreciation as soon as you drive it off the dealership lot, but many new cars have a much higher resale value. Because of their higher resale value banks can afford to offer you better interest on your loan.

Think Carefully Before You Buy

When it comes time to buy your next car don

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