When it comes to making an important decision like buying a car, you must do your research. From picking the type of car, to the model you want, to how to finance the purchase, you ALSO need to decide between buying a new or used car! Your answer to this long standing debate determines the state of your finances in the coming years. To help you find the right fit and make an informed decision, we have listed down all the advantages and disadvantages of both new and used cars:

New Cars

-Advantages

One of the biggest advantages of buying a new car is that is fresh out of the factory and comes with a warranty. Buying a new car also means not having to worry about too many repairs in the initial years and being able to enjoy the latest features, a brand new engine, great mileage and more! You may also get a chance to buy a hybrid and reduce your monthly gas expenses. While these are advantages you get to enjoy after the big purchase, one of the most practical reasons to go for a new car is the fact that dealers tend to offer lower interest rates.

-Disadvantages

The biggest disadvantage of purchasing a new car is that it can end up costing you a lot of money, especially because new cars depreciate in value very quickly!

Used Cars

-Advantages

One of the biggest advantages of going with a used car is that it doesn’t depreciate in value as much as a new car does. There is a strong chance of you being able to sell the car for the same amount as you paid for it. Since a used car is cheaper than a new one, you can easily save up and pay for it with cash. If you do decide to take out a loan, you can secure zero interest loans without much trouble. Another advantage is that the insurance premiums for a used car are lower!

-Disadvantages

Since the choices for good used cars are pretty limited, you might have to compromise on the color and make of the car. The biggest disadvantage of a used car is that it may not be very reliable and may require a lot of repairs.