If you're n the market for a car and you don't know know whether to buy a new car or a used car, consider some of the pros and cons of each choice.
New cars are great because they have no previous history of ownership, and you won't have to worry about maintenance records, accidents and other things. New cars also come with warranties that have a minimum of three years or 36,000 miles, and some cars have more extended warranties. Therefore, buying a new car means that you won't have to worry about paying any unexpected repair bills for the first few years you own the car.
New cars also come with factory rebate incentives, and depending on what kind of incentives you can find, a new car could be cheaper than a newer used car. Interest rates and financing terms for new cars are generally lower also. New cars can be financed for up the 84 months in some cases, and in most cases the financing is typically for 60 months.
The best thing about used cars is that you won't have to pay all of the depreciation that new cars lose the moment it is driven off the lot. You can also get newer used cars at many dealerships, like Lehigh Valley Car dealers, with only a few thousand miles and with the remainder of the original factory warranty too. Many car dealerships are beginning to offer certified pre-owned used cars so that consumers will have peace of mind knowing their used cars are mechanically sound. If you are still worried about a used car, you can also purchase an additional warranty beyond the factory issued warranty.
Used cars can save you thousands of dollars on the initial purchase, but the interest rates are higher than new cars and many lenders will typically finance them for only 36-48 months.
With tax rebates around the corner, your trade-in, plus your refund check, plus any dealer incentives may make it the perfect time to think about purchasing a new or used car.
Article Last Updated: February 14, 2012.
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A sports, travel and business journalist for more than 45 years, James has written the new car review column The Weekly Driver since 2004.
In addition to this site, James writes a Sunday automotive column for The San Jose Mercury and East Bay Times in Walnut Creek, Calif., and a monthly auto review column for Gulfshore Business, a magazine in Southwest Florida.
An author and contributor to many newspapers, magazines and online publications, James has co-hosted The Weekly Driver Podcast since 2017.