5 Best Ways To Decide Whether You Should Buy a New Car or a Used One
Buying a car is a big decision that you will have to live with for years. One of the most important choices you need to make is whether to buy a new or used car. Each has its advantages and disadvantages, but this handy checklist should help you decide.
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Choose the best answer for each of the following questions.
Are You an Early Adopter — Do You Like Being the First to Have the Latest Technology?
A. Yes, I always want the newest gadgets.
B. No, I like familiar things. I’ll wait until new technology becomes mainstream and has all the bugs worked out before I buy.
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Does Your Car Have to be a Certain Color or Have Specific Features?
A. Yes, there are some features I have to have and others that I really don’t want.
B. No. I like some colors better than others, and there are a few I won’t buy, but I’m not that particular about color. As for features, as long as it has the right type of seats and a sunroof, for example, I’m good.
How are You Paying for Your Car?
A. I’m paying cash or getting a loan through my bank.
B. I have a trade-in, and I’ll finance the balance where I buy the car.
Are You Good about Keeping up with Maintenance on Your Car?
A. I change the oil regularly but sometimes forget to bring it in for regular tune-ups unless I’m reminded.
B. I know my car will last longer if I maintain it well, so I’m pretty vigilant.
How Long Do You Plan to Keep the Car?
A. I’ll keep it for as long as I can — buying a new car is a pain, so I do it as seldom as possible.
B. I like to get a different car every five or six years.
If most of your answers are ‘A’s, you’re likely to be happier with a brand-new car. You can get the latest bells and whistles and the exact color and options you want. If you’re paying cash or financing elsewhere, be sure to negotiate the price with the dealer before you disclose that fact. They make a lot of money off financing, so you may not get as good a deal if they know you’re going to pay cash.
You’ll get a solid warranty, and some new cars come with free scheduled maintenance, which is a good incentive to take it in for that 30,000-mile checkup. New cars depreciate faster early on, but if you plan to keep the car for a long time, the resale value will even out in the end.
If you answered mostly ‘B,’ a used car may be a better bet for you. You have some flexibility when it comes to color and options, so you’re more likely to be able to find a used car that you like. You may get a better price if you have a trade-in and use the dealer’s (or the car lot’s) financing.
You’re good at maintenance, which should keep the car running well for a long time, even if you don’t have the full warranty you would get with a new car. And, if you only keep it a few years, you’ll get more of your ‘investment’ back than you would have if you had bought new.
New or used, the best car for you is the one that you can afford, and that you enjoy driving.
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