Buying a New Car vs Used Car
Value vs. Affordability
Recently the internet has been flooded with articles claiming that some new cars are now more affordable than their late model counterparts. Citing an overpopulated new car market, the articles point to the huge sales and incentive laden loan programs offered by the dealership. These dealership tactics help drive down the prices on a new car, which can result in lower monthly payments when compared to a used car. While on the surface this claim seems credible, it begins to lose a little validity when you compare the value of the cars. The simple truth is that many new cars still depreciate at a much faster rate than used cars. For example, some new cars will lose up to 60% of their value within their first three years. In comparison, a later model used car, will have already incurred this depreciation rate. So while its initial sticker price may seem comparable to a new car, it holds a better actual value.
Safety and Reliability
Safety and reliability are two of the top reasons car buyers cite for choosing a new car over a used car. If you are worried about the prospect of purchasing someone else’s headaches, a new car, which contains the latest engineering and is compliant with the most recent safety standards, offers an almost unbeatable choice. In addition, most new model year vehicles come with a three-year to ten-year warranty, meaning you are covered in the case of a major breakdown or mechanical malfunction. On the other hand, certified pre-owned cars have done a lot to put the reliability standards of a used car on the same playing field as a new car. These vehicles have been put through a rigorous inspection process. Only cars that pass this inspection are included in the program. The cars that do pass are often accompanied by an extended warranty plan. At UsedCars.com, we make finding a CPO vehicle quick and easy.