dealershipsThere are so many choices when it comes to car buying. You have to decide which make and model, color, amenities package, and of course, whether to buy used or new. Buying a car is an investment, and the cost of a car is a big decision for those on tighter budgets. The cost of a car is more than the sticker price. There are taxes and fees and interests costs over the course of the loan. We’ll look at the advantages of buying either a new car or a used car.

New Car Advantages

When you shop for a new car, there are unique advantages. New car dealerships are not difficult to find. A new car is just that -- new, and it comes with a manufacturer’s warranty. New cars have fewer repair costs and if there is a problem the warranty will cover it. There may be new car financing perks that dealerships offer in order to move inventory.

New cars also have the latest technological advances. You won’t have to wait to buy the upgrade because it will either come standard or will be an option on your car. These advances include the best sound systems, Bluetooth connections, driver assist features, and backup cameras. In 2017, total sales of new cars exceeded $1 trillion.

Used Car Advantages

When you shop for a used car, you have different advantages. Used car dealerships are even more plentiful than new car dealerships. When you buy a used car you avoid paying for the depreciation built into new cars. This means if you were to sell your used car shortly after buying it, you would have a better chance of recouping much of your cost in the resale. This is not true of a new car. Also, depending on your bank or credit union, buying a used car may help lower your financing costs, which means lower payments over the course of the loan.

Due to the lower cost of a used car, you will be able to pay cash for the purchase more easily. There are the obvious benefits of paying cash: no financing costs. You own the car outright. Additionally, used cars are less expensive to insure because the car’s age and mileage have decreased your insurer’s liability and risk. Another advantage to buying a used car is that there is a track record for that vehicle. Therefore, you can research that make and model's performance over time. There are many sites dedicated to evaluating cars and trucks, including the venerable Consumer Reports.

The Decision Is Up To You

You must make the final decision whether to buy a new or used car, but no matter the decision you can save money if you pay cash for the vehicle. Owning your car outright has the advantage of avoiding interest charges, financing paperwork, and waiting for the title of ownership.

After doing your due diligence, be confident that you have made a good choice and enjoy your new or used car.

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