Ready to buy a car but unsure if you should buy new or used? The answer depends a lot on your personal situation. So before you commit to buying a vehicle, ask yourself these questions:
WHAT CAN I AFFORD? New cars are, of course, much more expensive than used. If a new car is out of your price range, you have no other options. But don't despair: you can find a high quality used vehicle for a low price if you spend time researching your options and comparing available cars. If you can afford to buy either new or used, however, continue asking yourself these questions.
IS THE CAR I WANT AVAILABLE NEW? It's possible you have a love for old Mustangs or a penchant for last year's Jeeps. Some folks do get attached to a certain make and year. If that's the case, you'll have to buy used to get the vehicle you want.
HOW LONG WILL I KEEP IT? Financially, it makes no sense to buy a new car every three or five years. For one reason, the value of a car depreciates the most during that time, so you end up paying for the highest depreciation years! Moreover, by the time you pay off the auto loan, you'll need another new car loan--so you never really "own" a vehicle. Instead, you're always making payments. To get the most from a new vehicle, you should plan to keep it at least eight years.
WHAT ARE MY PRIORITIES? Desperate to have a luxury vehicle to impress the neighbors? In that case, you may want to buy used. High-end luxury cars tend to hold their value for a long time, and their expensive price tag means buying used is the only option for most folks. Prefer something that will always be dependable and reliable? Stick with new, because when you buy used, you never really know what happened to that car before you owned it.
