Is it Better to Buy a New or Used Car?

Is it time to upgrade to a new vehicle? If so you’re probably wondering, is it better to buy a new or used car. That all depends on your budget and how you drive in Nixa. Chances are, if you compare new vs. used cars, one is going to be a better fit for you. How do you choose? Thompson Cadillac has the details in how to compare buying a new car vs a used car. 

New vs. Used Cars: What are the Differences? 

Only you can decide the right choice in new vs. used car for you and your Ozark drives, but Thompson Cadillac can tell you the advantages and disadvantages of both. Here’s the criteria you should use to decide if buying a new car vs. used is right for you: 

New Car Advantages

• Newest Technology: Especially when you’re shopping for a Cadillac, you can get a big technology boost if you choose a new car. You’ll be driving one of the most technologically advance vehicles on Republic streets. 
• Greater Fuel Efficiency: Impressive fuel efficiency ratings are a goal for most automakers. Today’s vehicles feature fewer V6 and V8 engines, as they’re being replaced with turbocharged motors that are designed for greater fuel economy. You can even choose to go electric with the Cadillac Lyriq. 
• Full Warranty Coverage: Most new vehicles come protected by a bumper-to-bumper and powertrain warranties that cover most of the car’s components for a certain amount of years and miles. 

New Car Disadvantages

• More Expensive: New cars are much more expensive to purchase than used and certified pre-owned vehicles. You’ll be taxed on the price you pay. What’s more, once the vehicle’s warranty coverage expires, you’ll likely find that your car’s state-of-the-art technology might be expensive to repair and maintain. 

Used Car Advantages

• More Cost-Effective: Buying a used car is a good way to save money on all fronts: your initial purchase from the dealer, auto insurance, and taxes. 
• Slower Depreciation: The value of a new car begins to diminish the moment you leave the dealership. A large portion of a car’s value is lost in the first few years of its lifespan. Used cars have already taken this initial depreciation hit, and lose value much more slowly as they continue to age. 
• Less Chance for Negative Equity: Negative equity is when you owe more on your car loan that what the car’s worth. So, if the car is lost or irreparably damaged, you may get stuck paying on the auto loan, even though you can’t drive the car. When you finance a used car, you’re likely to have a smaller car loan, so it’s less likely that you’ll end up “upside down” on the loan. 

Used Car Disadvantages

• Higher-Priced Financing: Lenders tend to charge higher interest rates on used-car loans, which leads to higher monthly payments. On the flip side, the price of the vehicle will be lower, so the loan term will also be shorter. 
• Shorter Lifespan: The more miles on a used car, the shorter the time you’ll be driving it. 

Start Shopping with Thompson Cadillac Today! 

Want to learn more about the car-buying process and how to get the right vehicle for you? Pay a visit to our car-buying hub for more information on how to get the right car for you at a great price!