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Buying New vs. Used Autos

If you are looking into buying a vehicle, you may be deciding whether to buy a new auto or a used one. There are pros and cons to both options, so here are a few things to consider when determining which route to go.

Financing
Interest rates for new vehicles are significantly lower than used auto rates, and dealer specials such as 0% and cash back options are associated with new vehicles as well. However, there are competitive interest rates for used autos as well.

Depreciation
When talking depreciation, you can expect a new car to drop in value by 10 -15% as soon as you drive it off the lot. A used car has already incurred that loss and depreciates at a much lower rate.

Maintenance
Most new vehicles come with a maintenance package as well as warranties. You can expect to pay much less on maintenance with a new vehicle; however, the savings of buying a used auto (or keeping your paid for vehicle) can outweigh the cost of maintenance.

Customization
While there are thousands upon thousands of used cars for sale, and you are sure to find one that comes close to being your ideal car and possibly afford more custom features, for some, there is nothing like being able to get a new car that meets your exact specifications. 

Calculators
There are many Auto Calculators to help you with the decision of buying a vehicle like using a Depreciation Calculator to determine the vehicle’s future value. 


Posted: 6/5/2012 with 2 comments

Categories: Buying a Car



Comments
Anna
I have always bought used. One of my family members just bought a used car and they were more expensive thhan the new cars in the same model. You take a risk in new models with new things added not working well or being recalled. Never buy the first of anything.
6/25/2012 at 10:00 AM

Brian Barnes
I just bought a 2011 Chevy Impala,and paid for it in cash.I was determined to save the money to pay cash,for a one,or,two year old car.My strategy was simple. No Car Payment.I bought a 2004 Buick Century in 2005.I paid it off in three years.So,in 2008 I was determined to save enough money to pay cash,for my next car,so I didn't have the burden of a car payment hanging over me.In four years,I was able to save $4500.00 a year,so I had $18,000.00,plus my trade in to pay cash for a one year old car.My Century I traded in had a 140,000 miles on it,and was in need of about $4,000.00 in maintenance and repairs.I've been looking for the right car,and deal,for the past 6 months.I was able to buy a certified pre-owned 2011 Chevy Impala,with 30,000 miles,for $13,500.00,with my trade in.Because it is certified,I have bumper to bumper warranty up to 48,000 miles,or 3/30/2015.No monthly payment,and no loan interest.I understand not everyone can be in the position I was,but with discipline,and determination,it's a great feeling to accomplish your goal.
6/25/2012 at 8:27 AM

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