It comes as no surprise that used cars help buyers avoid steep depreciation rates, insurance costs, and monthly car payments. However, is there ever a time when it is better to go new? In this article, used car dealers Butler NJ gives you 10 car-buying tips to help you decide whether you should or shouldn’t buy used.

#1. Do You Want Extended Warranties?

Often times, dealerships offer more negotiation flexibility when it comes to new cars. This extends to extended warranties, which can cover everything from repairs and major vehicle systems to anti-theft and suspension components. Why are you more likely to secure an extended warranty with a new car than used car? Simple. More pricing flexibility with new cars versus used. Long story short, if extended warranties and other add-ons sound appealing, you may want to consider purchasing new.

#2. Are You Interested in a Lower Interest Rate?

Generally, used cars have a higher interest rate than new cars. But wouldn’t used cars have a lower interest rate? One would think; you see, often times lenders view used cars as a riskier investment. They are older and more likely to break down and need repairs. Also, keep in mind that cars depreciate significantly once off the lot, depreciating as much as 20%-30% after year one. Used cars, in this sense, have already dropped significantly in value, which is why lenders may increase the interest rate.[1] Factor this with new car buyers having more financing options, and it makes sense why some go for new over used.

#3. Do You Want to Know the Complete Vehicle History?

Even with the most in-depth and reliable of vehicle history reports, the truth is, there is always a chance that your used car with a clean title really is a salvage. With new cars, you know the entire vehicle history back to front because you are the vehicle’s only owner. This comes in handy since you do not have to worry if you have a lemon or flood-damaged vehicle on your hands.

#4. Is Fewer Repairs at the Top of Your List?

As used car dealers Butler NJ states, due to their age, new cars will require fewer repairs. If such repairs are needed, they are minor compared to more extensive repairs when cars start to approach the 200,000 to 300,00-mile mark. This means fewer trips to the mechanic’s and fewer times shelling out for repair and replacement costs.

#5. Would You Rather Enjoy the Latest Technology?

It goes without saying, new makes and models are bound to have the latest features and technology. In fact, as of this year, the Nissan Leaf is paving ways with its electric powertrain upgrade and ProPilot Assist system, which does the steering, braking, and parking for you.[2] With less new vehicles out on the road, car buyers may be hard pressed to find several used makes and models. Case in point, if technology is a big priority for you, consider buying new versus used.

#6. Do You Want a Less Expensive Vehicle?

In other words, is price at the top of your list? If so, going used may be the way to go. You see, according to a study, new vehicles now are priced $6,500 more versus five years ago. There are a couple reasons why: for one, creeping interest rates, longer than average loan lengths, and plain and simple steeper auto prices.[3]

Couple this with car insurance, maintenance and repair costs, gas, registration and other applicable fees, and you are looking at some significant costs when it comes to buying new. In fact, if you want to get specific, depreciation is one of the biggest reasons why used cars usually have a lower price. As used car dealers Butler NJ mentioned, depreciation rates tend to be in the 20% to 30% range after the first year.[4] Used cars over a year old have already absorbed this depreciation amount compared to new cars which have yet to exit the dealer lot.[5]

#7. Are You Looking for an Eco-Friendly Vehicle?

If so, like we said, the Nissan Leaf is a great vehicle to look into. Not only does it come with the latest auto technology and safety features but is very green-friendly. However, buyers are not only privy to that eco-friendly model. Many dealerships, for instance, have several affordable and reliable used hybrids for buyers to choose from. It comes down to what you are willing to pay. (However, know that you will be saving in gas, as hybrids like the Nissan Motor Infiniti Q70 Hybrid sedan can save buyers almost $5,000 in fuel.[6]

#8. Are You Trying to Take Advantage of Specials?

While dealerships tend to offer specials for used cars and new cars (Precision Jeep follows this), manufacturers typically offer more leasing specials and financial incentives—like zero-percent financing—for new vehicles. Just be sure to check in with your dealership, as specials can change as often as daily.     

#9. Do You Want a Lower Insurance Rate?

When insurance is a priority, consider going used. Insurance is based on price. In other words, the less expensive the vehicle, normally the lower the insurance rates. Also, to save more, used car buyers can drop repair coverage to get a better deal.[7] (The same goes for registration!)

#10. Are You Interested in a Luxury Car?

As Nerd Wallet specifies, used luxury vehicles go for 30% or less. This makes it a much more affordable option than if new,[8] especially when considering the specific repair costs and premium gas prices. Long story short, if you want a luxury car but do not have the finances to afford that new sports car, consider the used route—(however keep car payments within 20% of your monthly income).[9]

Final Thoughts: No Matter Used or New, Always Come Prepared

No matter whether you are planning on buying used or new, conducting market research beforehand never hurts. Used car dealers Butler NJ recommends that when it comes to deciding new or used, make a list of your vehicle priorities. What qualities are you prioritizing? From there, you can better determine which route to go. But whatever you do, try not to lease to prevent your money So, did you buy used or new? Do you believe you should always buy used? Why? Let us know by commenting in the comment’s section below.

Missed Anything? Here’s a Summary:

·         Used cars are not a shoe-in when it comes to purchasing a vehicle

·         If car buyers are looking for extended warranties and other add-ons, consider going new

·         Contrary to what some may think, since new cars usually don’t need repairs and are more reliable, car buyers can expect a lower interest rate than when going used

·         (However, do not get a lower APR confused with an all-around lower car loan)

·         If you are concerned with who owned the vehicle and want to completely know your vehicle’s history, it may be best go to new—even if the report shows a clean title, 100% guarantee can never be the case for used

·         If you want a vehicle that will normally need less repairs, again, go new

·         Why? Even with reliable classic makes and models, when older cars approach the 200,000- to 300,000-mileage mark, they are bound to experience some types of breakdown, and need repairs

·         Car buyers that are seeking a make and model featuring the latest technology, consider new—simply because there is not as many used cars (yet) on the lot

·         Now, when it comes to less expensive vehicles, usually used is the way to go; while APR may be a couple points higher than when going used, factor in loan length, sales price, and monthly car costs, and you are looking at a more affordable vehicle

·         You can benefit from an eco-friendly vehicle, new or used. As with some hybrids, you can save big on gas

·         Buyers looking to save and take advantage of financial incentives may want to look for new cars, as manufacturers in general tend to offer more financial specials like zero-percent financing

·          If you want a lower insurance rate, consider going with a used vehicle, as car insurance usually is based on price

·         For car buyers who want a luxury vehicle but cannot afford one, used may be the way to go just as long as monthly car payments stay within 20% of the monthly budget

Interested in Butler cars for sale? Have auto questions? Contact Precision Jeep, used car dealers Butler NJ for more details today.

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