Car shopping is an exciting experience, but trying to figure out what kind of car you want can make the process quite difficult. Buying new, used and pre-owned vehicles all have their advantages and disadvantages, and in the end deciding on one really depends on your personal preference. Before making any decisions, it is important to have a good idea of what each different type of car has to offer.
- Buying New – New car sales account for 29% of all auto sales in the United States, according to Edmunds. Perhaps the most obvious advantage of buying a new car is that it is brand new. You don’t have to worry about the car’s history or any problems it might have, and it is less likely to require auto service for repairs in at lease the first couple of years. New cars not only give their owners peace of mind, but newer models are continually being equipped with more efficient technology, allowing owners to save money at the pump. The obvious downside to new cars is that they cost significantly more than used or pre-owned vehicles.
- Buying Used – Used cars can be a great option for people looking for a good deal on a new car. The best used cars are generally much cheaper than new ones, saving car buyers an average of 35-40%. Another advantage of used cars is that they depreciate at a much slower rate than new cars, which drop an average of 19% in value within the first year of ownership, according to Edmunds. Potential downsides to buying a used car is that it can be difficult to know everything about the vehicle’s history; however, if you look at reputable used car dealers you are more likely to get an accurate history. They are also more likely to need auto service repairs sooner than a new car would.
- Buying Pre-owned – The final option when it comes to car shopping are certified pre-owned vehicles (CPO). CPO vehicles offer the peace of mind of a new car at the price of a used car. These used vehicles must pass a very rigid inspection before being declared CPO. All necessary repairs are made before the car goes on the lot, so you avoid expensive auto service that can accompany a used car soon after purchase. They also come with a factory warranty, giving you the same amount of coverage you would get with a brand new car. While a CPO vehicle is a great deal, it also shares some of the disadvantages of a used car. Having been previously owned, it still has general wear and tear and won’t last as long as a new car.
There are pros and cons to each type of vehicle. When it comes down to it, the car buyer needs to weigh the benefits of new, used and pre-owned vehicles and decide what is best for them. This is a great source for more.