By Steve Nitz
At some point in their lives, a lot of Americans are faced with the decision of whether or not to buy a new car. It certainly has its benefits – no miles, brand-new upholstery, that sweet new car smell.
However, is it worth it? There are plenty of benefits to purchasing a used car as well. It really depends on your situation and what you see as the best fit.
Let’s take a look at benefits of both new and used car buying.
Benefits of buying a new car
This issue is pretty obvious, new cars are just going to be more reliable than used cars with miles on them. With a brand new car, you’re starting from scratch with zero miles on the odometer. The new car will run smoother and there won’t be a quick need for upgrades such as new tires.
2. Interest Rates
While buying a used car is cheaper, one benefit of going to the dealership and getting a new car is that interest rates are generally lower for new car loans.
Another benefit of new cars are the added safety features many of them possess. These include adaptive cruise control, which monitors the distance from your vehicle to the vehicle in front of you and adjusts it to a safe distance from vehicles ahead, and collision warning systems. Safety features is certainly something to inquire about when purchasing a new car.
Benefits of buying a used car
1. Bang for your buck
It may not have that great new car smell, but a used car is going to save you a lot of money, as cars lose a lot of value even in their first year. Cars can lose as much as 20 percent of their value in depreciation when it’s purchased, meaning that even if you’re buying a year-old car, there’s plenty of value.
2. Move up in class
Everyone has a dream car they’ve always wanted. Whether it’s a new Porsche, SUV or sports car. If you don’t feel like shelling out cash for the new version of the vehicle, deciding to purchase a used one could help you realize that dream.
3. Avoiding fees
With used cars, you can generally see a reduced registration fee, as in most states fees are based on year of the car and its value. Used car buyers can also avoid fees at the dealership.
When it’s all said and done, there are plenty of benefits to both new and used car buying. Whether to go to the dealership and drive off in a brand new car or head to a used car lot or private owner depends on one’s personal situation and preferences.