Is It Better to Buy a New or Used Car?

Is it better to buy a new or used car? Want to buy a car but can’t decide between a new model and a reliable pre-owned one? Rest assured, this is a typical predicament. Let’s compare new and used cars and highlight their key differences to assist you. If you’ve ever asked, “Is it better to buy a new or used car?” we’ve got an answer. For all you Cape Coral drivers out there, we’re here to make things easier and have a professional finance staff standing by to help you when you’re ready to make your next buying move. Until then, the following article sheds light on which might be more suited for you. 

When Is It Better to Buy a New or Used Car? 

Benefits of New vs. Used Car

First and foremost, you’re receiving the newest and best in automotive technology when you buy a new vs. used car. Due to the quick pace at which technology advances, even a vehicle that is only a few years old may seem outdated. 

Most new cars have warranties that cover the entire vehicle, including the engine and bumper-to-bumper. You may rest easy knowing that many of your car’s parts are protected for a set amount of time, whether it’s years or miles. If you have a higher budget, you might be better off buying a new vs. used car. 

Drawbacks of New Cars

1. Price: Compared to old cars, new cars are quite expensive. You should be ready to pay more in taxes for that purchase. Plus, keeping your car’s cutting-edge technology up to date can get pricey once the warranty ends.

Used Car Benefits

1. Save Money: Purchasing a pre-owned model is a more budget-friendly option. 
2. Reduced Rate of Depreciation: Driving away from the showroom, the value of a brand-new car drops precipitously. Older vehicles take a bigger initial hit from depreciation because their value drops more slowly over time.
3. Decreased Probability of Negative Equity: Naples and Bonita Springs drivers may experience the disheartening reality of negative equity, when their loan balance exceeds the car’s actual value. If your vehicle is stolen or badly damaged, this could cause a lot of financial trouble. A lower loan amount is typically associated with used vehicles, lowering the possibility of becoming “upside down.”

Cons of Buying Pre-Owned Vehicles:

1. Larger Monthly Payments Due to Higher Interest Rates: When financing a used car, interest rates tend to be higher. However, bear in mind that due to the reduced car price, the loan duration will be shorter.

Visit Val Ward Cadillac for Your Next New or Used Car! 

Should I get a new vs. used car? A combination of the two is possible at Val Ward Cadillac. If you’re looking for a new model, we have a stunning selection. No matter your budget, you’ll find the perfect new or used car in our screened inventory. We have alternatives under $25K, in addition to our certified pre-owned vehicles and our regular used car inventory. Get pre-approved for low-interest financing while you peruse our large inventory of cars, trucks, and SUVs. Additional questions? If you need assistance finding what you’re looking for, just give us a call.