Is it Better to Buy a New or Used Car?

If you’re looking to upgrade your Xenia commute, you might wonder, “Is it better to buy a new or used car?” There is much to consider, and one is likely a better choice for you. Below, Key Chrysler Jeep Dodge Ram FIAT helps you compare new vs. used cars so you can make a wise purchasing decision. Read on as we answer the question, “is it better to buy a new or used car?” Contact us if you have any questions or want to start shopping.

New vs. Used Cars: What are the Differences?

New Car Advantages

• Newest Technology: When you buy or lease a new car, you get the latest and greatest features and technology. Automotive technology advances rapidly, so even a vehicle just a few years old can already feel outdated.
• Greater Fuel-Efficiency: The cost of gas feels out of control, and today’s new cars feature fewer V6 and V8 engines than in years past. Every year, fuel economy improves, which means more significant savings at Beavercreek gas pumps!
• Full Warranty Coverage: New cars come protected with a bumper-to-bumper and powertrain warranty that covers most of the vehicle’s components for a limited amount of miles or years. That means greater peace of mind on your Springfield drives!

New Car Disadvantages

• More Expensive: New cars cost more than used and certified pre-owned vehicles. You also have to pay sales tax in most states.
• Faster Depreciation: When you drive a new car off the dealership lot, you immediately experience about 20 percent depreciation.

Used Car Advantages

• More Cost-Effective: When considering new vs. used cars, the cost is a significant factor. Buying a pre-owned vehicle is an excellent way to save money.
• Slower Depreciation: The value of a new car diminishes the moment you drive it off to your home in Wilmington. Used cars have already had this initial depreciation and lose their value much more slowly as they age.
• Less Chance for Negative Equity: Negative equity is also called being “upside down” on your car. That is when you owe more on your car loan than what it’s worth. So, if the car is lost, stolen, or damaged, you may get stuck paying back the loan, even though you can’t even drive it. When you finance a used car, you’re less likely to end up “upside down” on your car loan.

Used Car Disadvantages

• Higher-Priced Financing: Autolenders usually charge higher interest rates on used-car loans, which leads to higher monthly car payments than you might expect. Still, the price of the vehicle is lower, so the loan term should be shorter.

Start Shopping For Your Next Car at Key Chrysler Jeep Dodge Ram FIAT Today!

By now, you probably have a better idea of whether it’s better to buy a new or used car. Whatever you’ve decided, you have our support! We look forward to showing you our new Jeep models and our vast used car selection. You should also check out our offers and incentives for additional savings! Contact us and let us know how we can assist you or get started online by completing a finance application.