Should you buy a used car or a new car?

Should you buy a used car or a new car?

Some reasons people give for why you should buy used:

• “Used cars cost less.”
• “Cars depreciate fastest in the first two years of ownership.”
• “Cars are built better than ever so there’s less risk than before in buying used.”

So of course, we should all be buying used … right?
7 reasons you should buy a new car instead of a used car

Here are a few things I debated before choosing a new over a used car — and you should too. 1. Cost. Sure, a new car costs more. But over the long term, not that much more. And the value — not just monetarily — can be much higher.

2. Reliability. Above all, you want to get a car that won’t break down.
3. If you buy or lease a new car, you don't necessarily have to put ANY money down, you can just pay the taxes and fees and roll everything else into your monthly payments, this means less initial out of pocket.
4. Interest rate. The interest rate on your car loan will depend on your credit, which is why having a good credit score is so important. If you have a solid credit score, your interest rate will be lower. This becomes more important over a longer-term loan. 
5. Resale value. You’ll be surprised how quickly most cars depreciate and how others (Toyotas and Hondas especially) retain their value.
6. Insurance. The insurance rates are lower for a new car (new cars have more safety features, ex. lane assist, blind spot monitoring) compared to a used car. Even if they’re only slightly different (say, $50 / month), that can add up to real savings over a few years.
7. Gas mileage. With gas prices on a roller-coaster ride, you may want to hedge your bets and consider a fuel-efficient or even hybrid or electric car. This could be an important factor determining the value of a car over the long term.

CITATIONS: SETHI, R. (2018, October 15). Should I buy a new car? 9 reasons to buy new. Retrieved March 26, 2019, from ht