Did you know that the price of new vehicles in the US averaged $40,768 in April 2021? That’s $92 higher than the previous month and a whopping $864 more than in April 2020!
That high sticker price can be enough to make anyone opt for a used car instead. However, price is just one factor to consider when deciding whether to buy a new or used car.
To that end, we came up with this guide comparing the pros and cons of both. Read on to discover when it makes sense to invest in a new car or when it’s best to go used.
When Buying a New Car Makes Sense
Even with all the price hikes, experts still project new vehicle sales to reach 15.5 million units this 2021. One reason for this is that nothing can really beat that awesome new car smell. Of course, there’s also the assurance that all vehicle parts are new and that they haven’t been under abuse.
Many new car models are also more fuel-efficient than their predecessors. They also come with better automotive technologies designed to reduce carbon dioxide emissions. In this way, a new car can help you save on fuel costs while also being friendlier to the environment.
When Buying a Used Car May Be Better
A used car benefits your wallet, too, considering that it can cost about half of what a brand-new one does. On average, used cars cost $23,000, which is almost $18,000 cheaper than brand-new vehicles. This significant price difference is the chief reason most car shoppers go with used.
Buying a used car can also save you on insurance costs, so long as the vehicle is in good working condition. You can also avoid the shock of depreciation, as used cars depreciate less than brand-new ones.
To ensure that you buy a reliable and safe used car, though, it may be best to work with a licensed dealer. Dealers must abide by mandatory federal laws that aim to protect consumers. In many cases, these laws don’t apply to private used car sellers.
If you decide to work with a used car dealership, one of the most vital questions to ask is if they offer CPO vehicles. CPO stands for certified pre-owned, and such vehicles come with a warranty. It’s a title given to used cars that have undergone rigorous multi-point inspection.
CPO vehicles are some of the best used cars out there as they have relatively low mileage. They haven’t been in any major accident, they don’t need repairs, and some parts are even brand-new. They cost more than non-CPO cars, but their warranty and guarantee make the extra price worth it.
Consider These Factors When Deciding on a New or Used Car
As you can see, price isn’t the only factor to consider when deciding whether to buy a new or used car. You also need to factor in fuel efficiency, depreciation, new technology, and insurance. Including all these in your purchase decision can help you get the most bang out of your buck.
Looking for other informative automotive and travel guides like this? Then feel free to check out our other recent blog posts to keep yourself updated!
Facebook Comments