New cars are one of very few purchases you can make in which you pay at least 20 percent more than what the item is worth.
Pay 40 grand for a new car and by the time you get it home, it’ll be worth about 32 grand. When you think about it with a rational head, that makes zero sense. Depreciating assets are common in this society, though, and the extra money pays for a little thing we like to call peace of mind.
If you’re looking to buy, what really makes more sense, new or used?
When buying new, you can build the car to your personal and exact specifications. If you want chrome wheels, a leather interior, touchscreen multimedia and cooled seats, you got it. This makes your new purchase all the more special and yours, rather than taking over someone else’s unwanted scraps.
With new, you also get a full warranty that will last at least 3 years, often much longer.
New cars also tend to have improved fuel economy and the most modern safety and technology features.
Even with all the benefits of new, used cars are often preferred by many shoppers.
The most obvious advantage of buying used is avoiding the worst of the car’s depreciation. Rather than losing half the value in the first 3 years, you can enjoy a slower loss of value. While depreciation is still a factor, the risk isn’t as high.
Buying used from a reputable dealer reduces the risk of getting a car with an unknown history, and certified used programs are almost as good as buying new.
The CarGurus used listings feature many highly rated dealers in all areas of the country and can help track down the exact car you want.
What’s your preference: new or used cars?