Comparisons Between Buying A New Car VS Used Car

new car vs used car
By John Hayden

The chance to own a car of your choice in pristine condition, complete with top of the line technology and safety features and no history of maintenance issues will always seem more appealing. It is wiser though to also compare financing for new vs. used cars as it may have a significant influence on the cost of the vehicle.

New Cars

  • Lower Rates: New car rates are typically lower than those of used cars, although financing periods usually are longer for new cars.
  • Special Rates: Sometimes Car manufacturers offer non –negotiable zero or low annual percentage rates (APRs) as attractive incentives on specific models, thus reducing buyers’ finance changes. When no particular financing offers are available, the APR and terms of payments are usually negotiable.
  • Bonus Cash: A vehicle’s sticker price may also offer money as part of a manufacturers incentive on new cars, although both bonus cash and a special low rate do not customarily get offered together.
  • Sales Events: Year-end and holiday sales events are some of the best times to look out for new-car deals during which many carmakers offer a range of incentives including special rates and bonus cash.

Used Cars

  • Slower Depreciation: As opposed to new cars that lose about 20 percent of their value in the first year, a used car for sale has already taken that depreciation hit, thus reducing the chance of a situation where the owner owes more than the vehicle is worth.
  • Shorter Loan Terms: Used cars get usually associated with higher APRs than new ones but, typically, they have shorter loan periods, leading to debt getting paid back faster.
  • Used vehicles offer buyers potential benefits like lower average prices along with plenty of car options with good quality, nearly new and certified pre-owned models.

The decision to choose between a new or used car will mainly depend on your particular car-buying needs, preferences, and your finances. It’s best to budget wisely by using a car loan calculator and familiarize yourself with the effect of APRs and loan terms on potential car payments. With haydenagencies.com, you can apply for used car loans in minutes and make an instant decision.

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