Buying versus leasing cars is always a hot topic, but if you’ve ruled out leasing and you’re looking to buy a car, do you buy a new or used vehicle? Buying a car is a serious financial commitment, and you want to be sure you have all the information in order to make the best decision. While there are benefits to buying a new car, read over the big benefits of used-car buyers.
Unless you decide to lease, the initial cost of buying a new vehicle will be larger than a used vehicle. Most banks and financial institutions will require at least a ten percent down payment or more if you are able. Paying less money upfront will cause you to have higher monthly payments. Two important factors in used-car-buying are certification programs and new-car depreciation.
Most manufacturers offer certified pre-owned programs that offer many benefits for used-car buyers. CPO cars are usually only late-model cars, offer low mileage, and have no history of major damage. These vehicles have an extensive mechanical and cosmetic inspection process before they are certified. Typically, CPO vehicles are covered by a warranty that includes the same features as a new vehicle warranty, like roadside assistance. One large perk is that many manufacturers offer lower rates on these vehicles than that of new-car loan rates. CPO vehicles do usually cost more than a typical used car because of the extra attention and coverage CPO used vehicles receive.
You might also like: Try An Original Route 66 Restaurant In Gallup, NM
Depreciation is always a hot topic when discussing cars. When you buy a new car, its value quickly falls once it is driven off the dealer lot. To be specific, a new car loses about 30 percent of its value in the first two years of owning the vehicle.
To get a better idea of the depreciation and future value of a used vehicle, consult used-car value guides for the specific make and model you are looking at. Leasing guides are also an additional resource you can use even if you intend to buy. Keep in mind lease payments are calculated based on resale values.
Disclaimer: The stock image is being used for illustrative purposes only, and it is not a direct representation of the business, recipe, or activity listed. Any person depicted in the stock image is a model.