New Car vs. Used Car? Some considerations...

Everyone loves that new car smell.  But when making the decision to buy either new or used, there are several advantages and disadvantages to consider about both...

Advantages of Buying New:

• All the newest, latest and greatest safety, convenience and environmental features will be available.  And if you are ordering your new vehicle directly from a manufacturer instead of driving one that is already on a lot, you may have even more a say in which features and extra packages you want include (or exclude).  Although you can find quite a lot of used vehicles with great options, the newest of the new are only on... well, new.
• Warranties are always important issue to look at.  Yes, you can find used cars with great certifications, but typically a manufacturer's warranty will always beat a dealership's personal warranty.  Take Hyundai's manufacturer's warranty for example.  Each new Hyundai comes with a 10 year/100,000 mile Powertrain and 5 year/60,000 mile limited bumper to bumper warranty.  You just won't find that with a used car.
• A lot of people find peace of mind knowing they have been the only one to drive their car.  The fact is, you will never quite know exactly how a car's previous owners have driven, handled or maintained it.  Which brings me to my next point...
• Maintenance.  Apart from oil changes and small upkeep (which a manufacturer's warranty may even cover) a new car will not need expensive service.  In comparison, you don't know how well a previous owner took care of a car's maintenance--or what will break when and how much it might cost to fix.
• Unless you will pay for your car with cash, financing will come into the picture.  You can finance for a used car (although it can be very difficult if the car is older than a 2004 or under $5,000) but there are far better financing options if it is for a new car.  Rates for new vehicles loans are typically lower than a loan for a used car.  Rebates and/or promotional financing from a manufacturer are also used for incentives to buy new.
• It can simply just be an easier purchasing process.  New cars have invoices, which is the price that particular vehicle will be off any showroom.  Invoices are readily available to anyone through a little research (from either manufacturer sites or sites like Edmunds.com or Cars.com).

Advantages of Buying Used:

• Price.  Everyone knows a used car will cost less than a new car.  CNW Marketing Research documented that in 2008, the average new car sale was $25,563.  Used car?  A mere $8,244.  Is that new car really worth $17,000 more?
• Besides from the initial cost, the resale value is another point to consider.  More than likely, when you go to sell that beautiful new car five years down the road the value will have dramatically dropped.  In fact, the value of your new car will drop 20-30% in the first year.  Used cars just don't have that kind of depreciation--by the time you buy, that initial drop will have already occurred.
• If the options and features you are looking for in a new car are above your price range, you may have to settle for a more basic vehicle.  But that doesn't have to be the case if you purchase used!  You can get more gadgets, features and safety options for less money.  More car for the buck.  How's that for thrifty?

Assessing your personal situation (from finances to what you are looking for in a car) is the very best place to start.  Buying a car can be filled with tough decisions, compromises and lots of walking on dealers lots. But, believe it or not, it can be a fun experience, too!