Arvest Education Center
One of the first questions to ask yourself when buying a car is whether to buy new or used. Budget and needs play obvious roles. For some, buying new is completely out of the question because of price alone. But if you like to keep your cars “until the wheels fall off” and can afford the payments, new cars offer a number of benefits.
Here are just a few to consider:
- Original and only owner – Buying new can make sense if you like the idea that no one else has owned the vehicle. You’ll be in charge of your new car from day one.
- No question about where it’s been – When you buy new, you don’t have to worry about how the car was previously used or whether it’s been damaged in an accident.
- Better interest rates – Banks, credit unions and dealerships usually offer lower interest rates on new cars.
- Better incentives – Dealer incentives can sometimes make a new car an affordable option. Towards the end of the model year, manufacturers and dealers extend special offers on cars to get them off the lot and make room for the new models. Cash back, low-interest financing, lifetime warranties — these are just some of the offers that can make the cost of a new car more affordable.
- Latest technology – As technology advances, so does the technology going into vehicles. Buy new and you may have the latest technology in your ride.
- Safety advantages - The latest technology advancements also typically result in a safer vehicle. These features may save your life if you’re ever in a serious accident.
This content has been provided by Practical Money Skills and is intended to serve as a general guideline.