Advantages of Purchasing a Vehicle: New vs. Used

Advantages of Purchasing a Vehicle:  New vs. Used

Struggling between purchasing a brand new or used car? There are benefits to each:

 

New-Car Advantages

  • Newer Technology

-When it comes to car buying, it’s always nice to have the newest technology. With newer technology, usually means safer cars with added features such as back up cameras, added airbags, and higher scored crash ratings.

 

  • Peace of Mind

-Driving a new car gives peace of mind. You’re the first to own the car, so you don’t have to worry about a car history report.  

 

  • Warranty Coverage

-A big benefit about a new car is the warranty package. Usually, you are under the warranty for three years. This means the dealer or manufacturers covers any complications with the car. A used car, may not have a transferable warranty.

 

  • Lower Financing Rates

-There are different factors that can cause you to have a lower financing rate such as new car values are easier to estimate, new car borrowers tend to have higher credit scores, and new cars can be less of a liability.

 

Used-Car Advantages

 

  • Lower Insurance Rates

-There are many factors that come to surface when it comes to car insurance. Having an older or used car can make your car insurance more affordable.

 

  • Depreciation

-While new models can lose 40 percent or more of their value in the first year, a used car deprecates slower, so you won’t lose as much value upon purchasing.  

 

  • Purchase Price is Lower

-Buying a used car is more affordable/cost-effective than a new car. Knowing your budget is important whenever it comes to buying a car.

 

  • Cheaper Annual Registration Fee’s

-The annual registration fee is based on the model and year of your car. Just like the depreciation of a car, it decreases as time goes on. If you wait a few years to buy a certain model of a car, you can save in fees.

 

Buying a car takes a lot of time and thought, but your credit union can help! Make sure you are using all of the resources available to you to make the decision!

 

Ready to purchase a vehicle?  Apply now for an auto loan with American Eagle Credit Union!


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