When it comes to financing a car, one of the first decisions you’ll have to make is whether to go with a new model or find something used at a reputable dealer.
“Ultimately, the quality of the car is all that matters – which is what makes this a tricky proposition,” said Moss Bros. Auto Group. “There are used cars that function just as well as new ones, you just might have to do some legwork to find them.” That is a sentiment shared by many in the industry, including the experts at Consumer Reports, among others.
Decisions like this are what can sometimes make car shopping of any type a stressful experience. Thankfully, all hope is not lost. If you’re having a hard time deciding whether to finance a used car or whether to spring for a newer (and probably more expensive) one, there are several key things to keep in mind along the way that will certainly help.
The Art of Financing a New Car versus a Used One: Breaking Things Down
One of the most important things to consider when it comes to financing a new car versus a used one comes down to interest rates.
Yes, the sticker price of a used car will likely be lower than a new one – sometimes significantly so. But what a lot of people don’t realize is that loans for a used car typically have higher interest rates. Depending on the exact make and model that you’re looking for, that could mean that you’re not getting quite the level of savings that you assumed you would be.
Not only that, but special financing offers are far more common with new cars than they are with used ones. Especially during special times of the year, dealers often offer financing incentives where buyers of new cars can enjoy 0% interest rates for a certain period. Especially for more expensive new cars, the savings on interest alone can help significantly reduce the long-term cost of the loan.
Another one of the major factors that you’ll want to consider when choosing between a new car and a used one comes by way of warranty coverage. New cars typically come complete with bumper-to-bumper warranties. These cover major components like the engine, the brakes, the powertrain, etc. Some even offer roadside assistance services should anything go wrong. All of this is made available so that you can be completely confident in the quality of your vehicle from the moment you drive off the lot.
“Used cars always come with some type of warranty coverage, but it will be far less comprehensive than that of a new car,” said Moss Bros. Auto Group. “That’s not to say that this is an immediate reason to write off the potential purchase of a used car. It’s just another factor that people have to consider when deciding what is best for their situation.”
Along those same lines, another crucial element to consider has to do with expected (and unexpected) repairs and maintenance. A new car does not have anything significant on it in terms of miles driven – meaning that at least for some time, anything beyond routine maintenance is likely something that you do not have to consider.
With a used car, its current condition can vary wildly depending on exactly what you’re talking about and who you’re buying it from. You could drive it for thousands of miles and not have any issues, or start to accrue expensive repair bills immediately. It’s hard to say until you get the car out on the road and manage to spend some time with it.
In the end, financing a new car versus a used one will always be a personal matter. Some people want the complete peace of mind that comes with that brand-new vehicle. For others, a used car may make more financial sense – especially one that is in solid condition. Only by carefully considering factors like those outlined above will you be able to make the best possible choice moving forward.
About Moss Bros. Auto Group
Moss Bros. Auto Group proudly serves as the parent company for multiple dealerships that have been serving customers in Southern California for many years. All told they make it a priority to offer the type of quality customer service that people just won’t find anywhere else – service that always helps them find the right automobile, no matter what. All told. Moss Bros. Auto Group locations specialize in the sale of both new and used vehicles of all types – including but not limited to cars, trucks, SUVs, vans, wagons, and more. They also offer auto repair and maintenance services.