One of the first decisions that a car buyer makes is to choose between selecting a new or pre-owned vehicle. While money can be saved by purchasing a used car, there are other factors that should be considered. New cars, while more expensive, offer buyers more choices, newer technology and more comprehensive warranties. However, the certified pre-owned programs now offered by many manufacturers are providing used car buyers with similar benefits.
Cars depreciate, and with some models this depreciation can be rapid. This can lead to great deals on late model used cars. However, aggressive rebate programs and low rate financing or leasing offers can sometimes dramatically reduce a new vehicles overall cost. Resale value is also a consideration, and used cars, having already depreciated, generally offer better resale value. Used cars are also cheaper to replace in the event of a total loss, and this often translates into lower insurance premiums.
New cars are usually covered by a comprehensive bumper-to-bumper warranty, which gives buyers a great deal of peace of mind. Another benefit is that warranty repairs on new cars are paid for by the manufacturer. According to the auto experts at Sawyers Chevy, this means that buyers do not have to convince a dealer that problems really need to be repaired, and they are not just the result of normal wear and tear. Used cars may have a part of the manufacturers warranty remaining, or they could be offered for sale as is. However, some manufacturers offer even more comprehensive warranties on their certified used cars than they do on their new models.
New car buyers are spoiled for choice. They can select from a dazzling array of colors, and they can pick and choose the options they want. They can also factory order a car when dealers do not have a vehicle on the lot that suits their requirements. Used car buyers must choose from what is available, but the selection of used vehicles is much more comprehensive than it once was. Leaps in technology, combined with short term financing and leasing offers, mean that many people are replacing their cars far more often than they once did. This translates into a glut of late model used cars on dealer lots.
New cars offer buyers the latest electronic and safety technology, which often means they have better fuel economy, greater entertainment options and improved reliability. However, this is offset by their higher price point. Buyers on a budget may find a vehicle with all of the features that they really need at a more affordable price on a used car lot.
Deciding which car to buy ultimately comes down to balancing the available budget against needs and wants. While new car buyers do not have to concern themselves with a vehicles accident and repair history, they do pay the financial penalties of a higher price point and more rapid depreciation. Used cars may not offer their buyers the same peace of mind, but they can be cheaper to buy, less expensive to insure and easier to sell.