Decisions on whether to purchase a new or pre-owned car depend on a number of factors; ultimately the choice lies with you. But as this purchase will have lasting ramifications on both finances and lifestyle, taking time to carefully weigh up both options is recommended before making your choice.
New cars typically provide the latest safety features, including extended warranties to reduce costly repairs over time. Furthermore, these vehicles typically have lower insurance and maintenance expenses compared to pre-owned models – although purchasing one may cost more per month and require higher payments upfront.
Purchase of a new car can offer many advantages, from having access to cutting-edge features and technologies, being accident free, and experiencing that special new-car smell. However, before making a final decision it is crucial that the total cost of ownership including financing/insurance fees/depreciation/mileage be considered as well.
Based on your current vehicle’s age and condition, it may be more cost effective to keep it than trade it in for something new. Keep in mind that most vehicles depreciate significantly within five years.
If a new car doesn’t meet your needs or budget, consider purchasing either a certified pre-owned (CPO) vehicle or one with low mileage that has already been certified as certified. These models have been fully inspected before being placed up for sale, and some even come with extended manufacturer warranties that extend past what may have been offered initially.
As you shop, it is beneficial to get preapproved for a loan and make a list of features most important to you – this will make narrowing down choices much simpler and facilitate easier comparison. If interested in any particular model or option package, call ahead so you can confirm if it still available as well as schedule a test drive appointment.
Right now, it is a seller’s market and finding an acceptable vehicle can be challenging. Remember that even high prices may be negotiable; taking several hundred off MSRP may help secure an even better offer.
Typically, November and December are ideal times to purchase a new car because this is when auto manufacturers unveil their latest models and interest rates drop, creating competitive buying conditions and giving dealerships opportunities for discounts. But if you are flexible about which type of vehicle you desire and willing to do some research beforehand, late model used vehicles often present great deals all year long.