Buying a used or new car? When purchasing a new vehicle, the question of new versus used is an important one to consider, particularly depending on your goals and budget. We’re going to look at some of the advantages and disadvantages of new vs. used vehicles, and then you’ll be armed to weigh them against what your priorities are for your next purchase and buy a new or used car! Additionally, we’ll do a quick rundown of the top 5 sellers in the USA in both new and used vehicles.
We will point out some of the primary advantages of buying new vehicles, as well as the pros of buying used vehicles.
- On the pros side of purchasing a new vehicle are the options and choices you usually have, including the latest gizmos. There’s also the fact that it’s simply not used, and doesn’t have a potentially secret past full of red flags. There are also the options to have warranty and scheduled maintenance, and the fact that it will likely have up-to-date safety and fuel efficiency standards.
- On the pros side for purchasing a used vehicle are the cost-efficiency (i.e. they’re much cheaper), due to the steep rate of depreciation on new vehicles the second they drive off the lot. There is also a wider range of options you have in vehicle selection when you consider that every previous year is available to you (versus solely the newer year models), and the fact that insurance rates can often be lesser on used vehicles.
Depreciation and price seem to be the biggest obstacles in buying a new vehicle. Some dealers advise that you get the best of both worlds, and purchase a mostly new vehicle at a bargain price, by “beating the depreciation curve.”
- Since the value drops the most in the first year of ownership, you can have the majority of new vehicle benefits at a drastically reduced cost, by buying a 2 or 3 year old vehicle. Additionally, “in many cases, the bumper-to-bumper warranty will still be in effect and the powertrain warranty will continue beyond that, eliminating the likelihood that you’ll have major expenses.”
- When buying used, whether a 2 year old vehicle, or a 12 year old one, there are some important things to keep in mind to maximize your value and minimize your risk.
Kelley Blue Book, both the authority and the actual book on used vehicles, offers advice on buying a used vehicle, which be helpful to keep in mind.
Video From Kelley Blue Book – Midsize Sedan Comparison
Start out by knowing your budget and what you want, and then do your research on the market value of the vehicle. When you’re in contact with the seller (whether private party or dealer), get a history and safety report on the car, do a walk-around and a test drive, and negotiate your best price with this research and the car’s current condition in mind.
Now that you know a little about how to look at buying new versus used vehicles:
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Let’s take a quick glimpse at the top 5 new sellers, and the top 5 used sellers in the USA, and a little about each… Straight from the pages of USA Today.
Here are the Top 5 New Sellers:
1) Honda Civic: Popular because it’s “affordable, dependable, and fun,” it’s a “compact car that Americans have loved for decades,” and is now roomier, with more power, and edgy styling.
2) Toyota Camry: Considered a sportier version of its previous models, it “still has all those Toyota virtues, but this time the company has added sharper styling and a sports-sedan interior.”
3) Toyota Corolla Sedan: This is a best seller almost every year, and has “a good list of features plus top-notch reliability and value pricing.”
4) Honda Accord: Called a “roomy, well-equipped, safe family sedan that still has that quirky-fun Honda touch”. A cool surprise in the new model: Honda is offering a six-speed manual transmission as an option.
5) Nissan Altima: This vehicle “gets good marks for fuel economy and a roomy interior.”
Not in the market for a new vehicle? Maybe you’re looking to beat the depreciation curve? If that’s the case, here is the list of best used cars.
Here are 5 of the Top Used Vehicles in the USA:
1) Toyota Corolla: As seen on the new seller list, this vehicle seems to be a classic that stays popular new or used, year after year.
2) Hyundai Elantra: “The Elantra has become one of America’s most popular small sedans. Take one for a spin and you’ll likely be impressed with its smooth ride, roomy interior, high fuel economy and solid build quality.”
4) Kia Rio: The Rio is available in a couple of different style options, and is known for “evocative styling, (a) peppy engine and an abundance of interior space.”
5) Ford Fiesta: “Four decades ago, the first Fiesta rolled off the production line in Spain and Henry Ford II personally chose the name for its links to the Mediterranean country. It quickly made the bestseller list, and today it’s still one of the world’s most-loved cars.”
Hopefully with all of this in mind, you can start narrowing down the field and make the best choice possible for your next new or used car. If you want to learn more information to help you on your journey, including facts on leasing vs. financing a car, leave a comment or question below.