In the US, more than 13.67 million vehicles got sold in 2019. Of these, 3.54 million sales were passenger vehicles. That means one in four cars sold that year were for personal use.
By contrast, used car sales in the US exceed 40 million units each year.
That doesn’t mean a used car is always the best option, though.
To that end, we came up with this guide comparing the different new car vs. used car pros and cons. Read on to discover which is better so that you make the right buying choice.
New Car vs. Used Car Pros and Cons: The Top Considerations
The transaction price of new light vehicles averaged $40,857 in January 2021. That’s $295 lower than the previous month. However, it was still a whopping $2,110 higher than January 2020.
Such high price tags are the biggest drawbacks associated with buying a new car. The trade-off is that you can be sure your car is 100% new from inside to out. It’ll also be under warranty, so you won’t end up with unexpected car repair costs.
On the other hand, the average selling price of used cars is around $23,000. That’s only about half of what you’d otherwise pay for if you go with a brand-new ride. This lower price, in turn, is the greatest reason for buying a used car.
A huge disadvantage to buying used is the potential of vehicle misuse or abuse. You can’t be 100% sure how exactly the original owner treated the vehicle. What’s more, private sellers generally don’t have to follow mandatory warranty laws.
Used Car vs. New Car: When Buying Used Makes More Sense
If your budget is tight, but you also want a warranty on a used car, consider going for a certified pre-owned vehicle.
CPO cars aren’t brand new, but they have undergone rigorous testing and inspections. Manufacturer-certified technicians conduct these procedures, and they’re also responsible for reconditioning processes. Most CPO cars also come with extras, such as free maintenance and roadside assistance.
New Car vs. Used Car: When Brand New Is Better
Every year, carmakers launch models that are more fuel-efficient than previous models. They’re also continuously introducing automotive technologies that cut carbon dioxide emissions.
So, new cars often have better mileage and eco-friendly features than used vehicles. This can then translate to more savings in the long run since you won’t have to top up as often. Plus, you also get to reduce your environmental impact by lowering your CO2 footprint.
Buying a new car may also be a good idea if you have a credit score that’s great enough to snag you a low-rate auto loan. A good score of between 670 to 739 may already qualify you for a car loan with an annual percentage rate of 3.99%. Your rate can go even lower if you have a very good or exceptional credit score.
Start Exploring Your New or Used Car Options Today
There you have it, the ultimate guide comparing various new car vs. used car pros and cons. Just keep in mind that new cars cost about twice than used ones, but they can be safer and more fuel-efficient. However, if your budget is a bit tight, consider going for a CPO vehicle so that it still comes with a warranty.
Interested in even more automotive buying strategies? Then head over to our tips section to discover more informative posts like this!