Couple Purchasing a New Car
Pros and Cons to Buying New and Used Cars
Everyday in America there are thousands of people making the decision on whether they should buy a new car or a used one. There are a lot of pros and cons when it comes to buying both new and used cars. There are many factors that should be considered before deciding on whether its smarter to buy new or used for your next vehicle. In this post we will go over the pros and cons to buying new and used cars.
It is a commonly held belief that it is always smarter to buy used cars to save money. However, this is not always good advice to follow, depending on the car that you want, or the situation that you are in. One of the reasons why this advice isn’t necessarily good to follow in all situations anymore is because the car market has changed fairly significantly over the past few years. The hard economic times we’ve been experiencing since 2008 has been causing many people to hold onto their cars for much longer than they used to. This has brought the used car supply way down and the demand way up in this country. It has also often led to much higher prices in the used car market. In some of the big used car auctions they used to bring in over 8,000 cars a day. Now they are lucky if they get 2,000 because there aren’t as many nice used cars around, so the dealers are holding onto the ones that they’ve got more now instead of taking them to auction. This has also negatively affected the price of used cars. Since there aren’t as many to go around, the dealers and private owners can charge more for them.
Pros/Cons to buying new and used cars
One good way to get a good deal is buy purchase a used car from a new car dealership. Oftentimes these dealerships will take used vehicles on trade in when the customer purchases a new car. You can often get a fairly good deal on a used car that way. However, just be very careful, we recommend asking a lot of questions, getting a CarFax history report and even having an independent mechanic look over the vehicle to see if it was maintained well or not. The most important aspect of maintaining a used car is keeping the fluids full and replacing them when recommended.
Usually, when it comes to the more expensive luxury vehicles it always makes sense to buy used because when you go to sell the higher priced cars they tend to lose more money than the lower priced cars. It is a good rule of thumb that any car over $50,000 will lose you money very quickly.
It’s also important to keep in mind that some brand new cars only cost about $2,000 more than a lightly used version of the exact same car. In situations like these you may opt to buy a new car instead of a used one because you can get the full factory warranty and a more reliable car.
As you can see, it’s not always beneficial to buy new or used cars in all situations. So the next time you need a new car, we recommend that you analyze your own personal situation and then decide for yourself if it would be smarter for you to buy a new or used vehicle. Also, remember to stop down by us at Matt Castrucci Nissan, Dayton OH the next time that you are in the market for a new or used vehicle.
