Wednesday, August 5, 2015

The Difference Between Buying a New Car Versus a Used Car

The Difference Between Buying a New or Used Car

WESTLAND, Mich.­­– Much like the debate over whether you should buy or lease a vehicle, you might also grapple with the difference between buying a new car versus a used car. Off the top of your head, you can probably think of a number of factors that go into this decision such as cost, technology, and repairs. But the questions you really want to answer ask how exactly those factors set apart the new from the used.

What does each cost?
More often than not, a new car will be pricier than a used car. This is because new vehicles tend to include newer technology, updated features, and modern design elements. However, if keeping up with automotive trends isn’t a priority for you, consider the fact that buying a used car will save you money due to its lack of contemporary features.

What are the differences in financing?
Interest rates hinge on a car’s resale value. It’s easier for a bank to predict how much a new car will depreciate compared to a used car (within 5 years new cars can depreciate by $9,000). Used cars come with higher interest rates than new cars do because they're more prone to major mechanical issues. Then there's the risk of a buyer who decides to bail on their used car purchase and leaves it for the bank to deal with a resale. A lender can make up for the uncertain resale value of a used car by hiking up the interest rate. However, despite used cars having higher interest rates, you still end up paying less in monthly payments because the cars principal is much lower than that of a new car.

How’s the gas mileage?
People really, really care about their gas mileage these days––you know how pricy the pumps can be. Of course, getting better fuel economy can be one of the perks of purchasing a new car. New cars usually get better gas mileage than used cars because, again, new cars tend to have updated technology. If you want to save money at the pump, a new car is your best bet.

Which costs more to insure?
Naturally, new cars cost more to insure than used cars do. Although new cars usually contain more updated safety features than used cars do, the higher cost of insurance for new cars is due to their overall higher value. The higher the value of the car, the more it costs to insure.

How much does maintenance and repairs cost?
A big chunk of a new car’s price tag includes a warranty that covers maintenance and repairs for a set amount of time. The great thing about a warranty is that you know most maintenance and repairs for are covered by the dealership or original equipment manufacturer (OEM). Just remember that eventually that warranty will disappear. Sometimes used cars come with warranties as well. These are called certified pre-owned vehicles, and you might consider this as an option for your next purchase. Aside from certified pre-owned vehicles, most used cars are more likely than new cars to require maintenance and repairs, which means you’ll end up paying more in that area. Then again, sometimes you get lucky and find a used car that runs forever without any major issues.

There are a number of important factors to ponder over when you look at the difference between buying a new car versus a used car. Hopefully this list breaks down some of the bigger differences for you, but feel free to come into our Plymouth area used car dealer with any other questions you might have. We'd be happy to give you the rundown on some of our used cars and trucks, and explain what makes them different from our new Ford cars and new Ford trucks. Either way, we’ll help you find the vehicle that’s right for you!

North Brothers Ford is located at 33300 Ford Rd Westland, MI 48185 and proudly serves as one of the premier dealerships in Metro Detroit, committed to exceptional customer service! Stop by, or give us a call at 888-806-7163, our knowledgeable and helpful sales team will be more than happy to assist you!

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