Kansas City Credit Union Explains The Pros and Cons of Car Buying
Are you looking for a new car in the near future?
You’ve decided on a make and model based on your luggage needs, technology preferences, and comfort expectations; now it’s time to find the right one and drive it home! Before you approach KCCU about an auto loan that will save you money, let’s discuss whether you should decide on a new car or peruse your used car options!
What’s the big deal with new versus used cars?
New cars will be more expensive, but you are more likely to get exactly what you want. Used cars may require you to compromise on some features but ultimately will cost you a lot less.
Check out these quick pros and cons of new versus used cars!
Fresh from the factory and perfectly polished, new cars come equipped with the latest updates! These brand new features include warranties, roadside assistance, and newest technology. With customization options and more financing offers from the dealership, expect to pay less when it comes to car repairs. A new car will last you a long time – plus you get bragging rights!
The big uh-oh about new cars? You pay big money just because the car is new. According to Credit Karma, “A new car depreciates, or loses value, as soon as it leaves the dealer’s lot. In fact, it could lose 20% or more of its value within the first year, depending on the make and model. This might not matter to you if you plan to own the car for a long time. But if you finance your car and plan to sell it in the next couple of years, you may find that you aren’t able to sell it for enough to cover what you owe on your car loan.”
Additionally, if you are currently facing a lower credit score, you may not be eligible for the dealership’s financing offers. Simply put, you pay top dollar with little to no financing deals simply for the car being unowned.
With a slower depreciation, you can essentially buy the car you want without paying top price. Not only do you save money on the overall price, but buying a used car will often save you money with lower insurance rates. If you can afford to put down a larger down-payment, your financing will be minimal altogether, enabling you to save bigtime in interest and fees. In other words, buying a used car that’s only a few years old will still give you the main features you want without overcharging you.
Used cars were often seen as subpar or sketchy due to expected repairs and higher mileage. In today’s car industry, most vehicles are extremely reliable and maintenance is much less of an issue than it used to be. Something else to consider: any maintenance issues that arise from a used car are generally already discovered. This means that the person who already bought the car new knows if it has issues with A/C or with overheating and you can use that information when looking for a used car to purchase. With a new car, you don’t know where its weak links are until they happen to you. Buying a used car allows you to put in research and determine which models have minimal kinks.
Keep in mind that every car – new or used – will still need regular maintenance. We’re talking about oil changes, new tires, or overall check-ups. With a used car, you can use the money you saved during purchase for these regular maintenance fees. Otherwise, it might feel like emptying your pockets for car expenses additional to your new car payments.
The hardest part of buying used cars is truly the research. The time and energy you put into finding the right car at the right price does take some effort sometimes. In the end, you may have to compromise slightly on colors or Bluetooth features, but with the right research you can find something that suits your needs and fits your budget.
Do you have financing concerns or questions about buying a car used or new?
Contact Kansas City Credit Union today – we would be delighted to help you figure out your options and decide on a successful path!