Do Your Homework
Don’t hit the car lot without doing your homework! Robin and Jamie have some great tips to get started.
New vs. Used:
Which Vehicle Is Right For You?
Once you hit the lot, it’s probably the first question that sales guy or gal is going to throw your way: Are you looking for a new or used car? The answer might be tougher than you think – both options have their pros and cons.
- No wear and tear!
- Equipped with latest tech, entertainment gadgets, and safety gear
- Since you’re the first owner, there’s no fear about the previous owners’ goofy driving habits
- In general, new cars qualify for lower loan rates
- You may be eligible for dealer incentives
- You’re going to be looking at a significantly higher price
- Every car loses a lot of value in the first year. In fact, it’s worth less as soon as you drive it off the lot!
- You’ll get more car for your money. And because you’re spending less, you might be able to afford extra features that would be out of your price range on a new model
- You’ll enjoy a steadier rate of depreciation, year to year – the car won’t lose nearly as much of its value as it will during that first year
- You’re getting a known quantity – any issues with performance for a given model will be well-known by the time you purchase the used version
- There are fewer guarantees here. Warranties, if they still exist, will be limited. Plus, you can never be sure how well the previous drivers maintained the car
- You won’t be able to drive the used car for as long – each vehicle only lasts so many miles, and your used car has already logged at least a few