Is it Better to Buy a New or Used Car?

If you’re interested in upgrading your current ride in the Minneapolis area, you might be asking yourself: is it better to buy a new or used car? The truth is neither of them are really “better” than the other. However, one type of vehicle will ultimately be a better fit for your needs, and that’s what Cornerstone Plymouth is here to help you find out. Both new and used cars come with their own unique pros and cons, which our team has laid out in the guide below. Read on, then check out our inventory to see what we have available!

Comparing a New vs. Used Car

New Car Advantages

• Newest Technology: When you buy or lease a new car, you know you’re getting the latest and greatest in terms of technology and features. Technology moves at a quick pace, so a car that’s only a few years old can be behind the curve.
• Greater Fuel-Efficiency: Vehicles have been becoming more and more fuel-efficient with time, and today’s vehicles usually boast powerful turbocharged engines with excellent gas mileage numbers instead of traditional V6 or V8 engines.
• Full Warranty Coverage: New vehicles come protected with comprehensive warranty coverage, including a standard bumper-to-bumper warranty and extended warranty options when that runs out.

New Car Disadvantages

• More Expensive: There’s no getting around it: new cars are much more expensive than their pre-owned counterparts. Their initial price tag is more expensive, they’re more expensive to maintain, and they start to depreciate in value as soon as you drive off the lot. Buying a brand-new car is often a heavy financial burden, especially for Maple Grove drives on a tight budget.

Used Car Advantages

• More Cost-Effective: If you’re looking to save money without sacrificing quality, buying a used car that’s a few years old is the way to go. You’ll also pay less on auto insurance, maintenance, and taxes.
• Slower Depreciation: As we discussed above, a new car begins to diminish in value as soon as you leave the dealership, and has lost a huge amount of its value in just the first few years of its lifespan. However, a used car has already taken this initial hit of depreciation, and can be resold later at a much more reasonable price.
• Less Chance for Negative Equity: When you’re in negative equity, you owe more on a vehicle than it’s currently worth (e.g. it’s worth $10,000 but you owe $15,000 on it). Financing a used car lessens the risk of negative equity, since the loan is generally smaller to fit the lower price tag.

Used Car Disadvantages

• Higher-Priced Financing: While the lower price of a used car means a smaller overall loan, lenders tend to charge higher-interest rates on loans for used cars, so you may actually end up paying more in monthly payments than if you bought a new car. This varies heavily from car to car, though.

Find Your Next Ride at Cornerstone Plymouth Today!

If you’re interested in learning more about new vs. used cars, or if you have any questions about what we’ve discussed above, feel free to contact our office! You can also stop by our dealership if you have any questions–we’re conveniently located near Minnetonka and happy to help with whatever you need. If you’ve made up your mind and want to get started on the buying process, you can apply for financing right from our website.