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Inform Yourself! – Difference Between New and Pre-Owned Vehicles

There are all sorts of hype about whether buying new or pre-owned is best. There are a lot of factors that come into play. Whether new or used is better for you depends on your budget, needs, and use of the car. If you put massive miles on a car for work every year, buying new probably will not make sense. If you do not drive your car very much and will pay it off and have it much longer than the lifespan, then buying new might be a great option.

The Depreciation Factor

If you are in it for the long haul, meaning you need a long warranty and plenty of guarantees, then there is nothing like a new car. Keep in mind, a new car will depreciate some when you drive it off the lot. The latest figures state that you will be upside down at least $2,000 when you buy that new car. However, if you are going to have it for the next 6-7 years, $2,000 is not a lot of deprecation to eat.

Interest Rates to Consider

A new car will always get a better interest rate over used cars. First, lenders are willing to extend the loans on an older car for a longer period than a newer one. Additionally, that new car may get a rate of around 3.97 right now according to the national average. However, the used car is looking at an average of about 6 percent. While that may not mean much on paper, it can really make a difference on your monthly payment. These figures are on those who have perfect credit. When the credit scores go down, the interest rates go up.

Certified Used Cars Make Sense

Car shopping doesn’t have to be stressful, that’s a misunderstanding. Some companies, like Woody Sander Ford, know that finding the right vehicle for you may be about what is currently on the lot. Some people have a budget in mind and do not necessarily have a specific car of their dreams. A certified used car can be just as great of a purchase as a new one. They have warranties and have been inspected from top to bottom to ensure they are mechanically sound. It can shave thousands of dollars off the price of a new one, especially if the car has low mileage.

Whether you buy new or used is up to you. What you need to make sure is that you have a great car that works for your family’s needs. Remember, if you switch out cars often, a used one is a better deal. New cars are for those who can stay committed for the long haul.

Rachelle Wilber

Rachelle Wilber

Rachelle Wilber is a freelance writer living in the San Diego, California area. She graduated from San Diego State University with her Bachelor’s Degree in Journalism and Media Studies. She tries to find an interest in all topics and themes, which prompts her writing. When she isn’t on her porch writing in the sun, you can find her shopping, at the beach, or at the gym.

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