New vs. Used
New vs. Used…There are pluses and minuses to both scenarios.
A new car will be in mint condition inside and out. You'll get the latest safety features and have the most up-to-date "look". In addition, most new cars come with at least a 3-year/36,000-mile warranty, so you should not have to pay for major repairs during that time. If you're financing the purchase, the interest rate on a new car is usually lower than on a used car. And with a brand new car, there is less risk of being deceived as to the car's actual condition, as can sometimes occur when you purchase a used car.
On the other hand, new cars depreciate faster than used cars. According to Consumer Reports, most models lose about 45 percent of their value in the first three years. Therefore, a used car often turns out to be a better value. An older model will obviously cost less. Plus, taxes and collision insurance on a used car will be lower. Another advantage of buying a used car is that you may be able to afford a more upscale model or one that's fully loaded.
Next Steps: Buying A New Car or Buying A Used Car