Do Your Homework
Did you know 52% of car buyers don’t know what kind of vehicle they’re looking for before they visit the dealership?
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.
New Vehicles
Pros:
- 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
Cons:
- 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!
Used Vehicles
Pros:
- 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
Cons:
- 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