Shopping for different vehicle is can be an exciting, but a little overwhelming at the same time. Visiting lots, checking out makes, models, prices and options, you will be faced with a lot of choices. One of your first choices will be whether to buy new or used. Both have advantages as well as well as some disadvantages. Taking a serious look at both the pro’s and con’s can help you determine what type of vehicle is best for you. The Loan Officers at the EEFCU can help you start this process by getting you pre-approved for a vehicle loan. They can provide you with information on the loan amount you qualify for, interest rates, and what monthly payments will look like. They can also help determine whether the vehicle you are looking at is worth the price.
Come talk to us before you start shopping. And, take a look at some of these common pros and cons you might want to consider as you start this process
New Car:
Pros:
- You will be covered by the manufacturer’s warranty that covers almost everything.
- You will be able to take advantage of the latest safety and convenience features.
- Most new cars come with at least some type of roadside assistance.
- New cars will need fewer repairs.
- You do not need to worry about previous owners repairs and handling.
Cons:
- New cars are significantly more expensive to purchase.
- Car insurance rates are usually higher on new vehicles.
- A value or a new car decreases the moment you drive it off the lot. This depreciation can leave you upside down should you wish to sell or trade at a later date.
- Luxury and higher end vehicles and features are more likely to depreciate.
Used Car:
Pros:
- These cars are generally cheaper and more affordable.
- Insurance rates are generally lower.
- Used cars generally have a lower rate of theft.
- Used luxury or higher end models may cost relatively the same or less than a newer no-frills new vehicle.
Cons:
- You may not be aware of the complete maintenance and repair history. A vehicle history report may not be complete or 100% accurate.
- Maintenance costs may be higher and unpredictable because of the age of the car and prior wear and tear from the previous owner(s).
- Warranty coverage will not last as long and will most likely not be as comprehensive.
- Older vehicles may not have as many improved safety features.