Buying a Car: New or Used?
You’ve decided to buy a car! Your first decision should be whether to buy a new car or a used one. Depending on your budget, the decision may be easy. If you can’t afford large monthly payments, a used car may be your best bet. You will want to consider factors other than price as you make your decisions.
- Think about how the vehicle will be used. Do you need a car to drive a short distance to and from work or school? Or do you regularly travel longer distances? A used car may provide basic transportation for less money than a new car, but a new car is likely to hold up better under heavy use.
- How important is a car’s styling to you? Cars used to be restyled, often dramatically, every two or three years. Due to higher research and development costs, most manufacturers now change basic car designs less often, every five to seven years. This means a two or three-year-old car may still be almost identical in styling to a new one.
- Another factor to consider is depreciation, or how the value of a car decreases with age. The average new car will lose about 30 percent of its value in the first year. You can avoid immediate depreciation by buying a used car. When purchasing a used car, you have no idea how the car has been cared for unless you purchase it from a friend, neighbor or family member.
- Additionally, keep in mind your own mechanical aptitude and tolerance for trouble. If you cannot seem to find a reliable mechanic, or if you are uncomfortable with the mechanics and the technical jargon that go with repair work, seriously consider buying a new car.
© CCCS of the Gulf Coast Area, Inc. Used with permission
