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!
