The decision to purchase a vehicle is one of the most important decisions we make, usually second only to purchasing a house. The decision to purchase a new car versus a used car sometimes has a very blurry line. So when should you pass up on a used car and buy a new one? When is it better to buy a used car instead of a new one? Here are a few tips to help you in your decision making process.
Firstly, you need to decide what type of vehicle you want. Is there a specific model that you are looking for? Weigh out your needs versus your wants. Do you need a seven-passenger van, or do you just want the extra room?
What are you going to use the vehicle for? If you are using the vehicle for work or commuting to work, then you may want to go with something more compact that has better gas mileage. If you are going to use the vehicle for toting the kids around, you may want to look at a vehicle with more space and options to help keep your kids safe, occupied and comfortable.
Once you have an idea of what type of vehicle you want to purchase, take a look at the different models available from different manufacturers. If you have a specific model in mind, find the manufacturer’s website and look at the new vehicles and costs. Once you have done some research, head down to the dealership and look at new vehicles and used vehicles.
In some cases, you can find a used vehicle that is only a year or two old, still has the balance of the warranty and is much less expensive. If you can find one of these sweet deals, it’s time to consider purchasing a used vehicle. A used vehicle that is only a couple of years old has low mileage and a great ticket price may be more suitable for you than a new vehicle off the lot. You may have to compromise on some options, color and style, but you may save tens of thousands of dollars by making small compromises.
Ask the salesperson at the dealership what they have in that style in used vehicles. Regardless, take every vehicle that you are considering for a test drive. Ask for a safety inspection to be done and read it to ensure there are no problems with the vehicle you are looking to purchase.
Financing is another consideration when choosing between a new and used vehicle. Because used vehicles are less expensive, you may qualify more easily for financing than with a new vehicle. Check with your lender before heading down to the dealership to find out how much you can borrow, it may be the deciding factor in new versus used.
