When you are in the market for a car, the question often comes up whether to buy new or used and the answer really is different for most situations, although more often than not a used car is the best value for your money. I might not have said that a few years ago, but with all the certified ‘pre-owned’ deals that are available, my opinion has changed.
Everyone knows that as soon as you drive a new car off the sales lot you have lost a few thousand dollars simply by taking ownership. The car can never be sold twice as a new car. True you can’t get that ‘new car smell’ any other way, but news stories have started to relate that the new car smell may actually impact your health in a negative way. If you really want that smell, you can purchase bottles of new car smell at auto parts stores now, without the possible toxic effects.
The biggest draw of a new car (apart from the feelings associated with anything brand new) has always been the warrantees that came along with them. Most used car dealers in the past had vehicles which may have carried 3 month, 3,000 mile warrantees, but seldom did you see anything more that that.
That has changed in recent years. Many of the warrantees have been extended to 10 year, 100,000 miles by the dealers on new cars and those can sometimes be transferred to second owners. But the newest development is that many dealerships will do a service check on trade-ins and offer extended warrantees on those vehicles.
Another factor is use. If you are buying a second car or a vehicle for your child (perhaps a first car for a new driver) often used is the best way to go. One doesn’t generally want to purchase a new car for a novice driver, or for winter usage. I have over the past few years had a second vehicle for the worst months of winter, just to avoid the salt damage that can occur during the winter months. Obviously accidents are more likely during those months as well. And it goes without saying that new drivers are more likely to have minor contact with bumpers and guard rails than experienced drivers, so the used vehicles make more sense in that case as well.
To argue on the side of new vehicles, there are some really sweet incentives that can come with a new car. Because so many people are trying to reduce living costs and are going to used cars, dealers have been offering reduced or zero interest along with cash back incentives.
Another factor that comes into play is the insurance factor. Many states only require liability insurance on motor vehicles, while bank financed vehicles must have full coverage. The difference between these two rates often amounts to thousands of dollars per year. So how do you determine the actual cost to operate a vehicle and what you really need, as opposed to what you “want.”
Those factors really are as individual as the people who are making the decision. A finance consultant probably feels that a newer car is needed to make a better impression on potential clients, while another person may just want to keep up with the neighbors. It’s a personal choice, but a vehicle needs to be looked upon as a liability, not as an asset. I love the feel of driving a new car, but the certified used choice feels better on my bottom line.