Is it Better to Buy a New or Used Car Right Now?

Time for an automotive upgrade? If you’re getting ready to trade in your car for something new, you may be wondering, “Is it better to buy a new or used car right now?” Neither new nor used cars are decidedly better, but when you compare new vs. used cars you’ll likely find one option to be a smarter choice for your personal driving needs and budget in Apex. If you aren’t quite sure what you value most in a vehicle, Hendrick Dodge Cary compares the benefits and potential drawbacks of new vs. used cars below to kickstart your research!

New vs. Used Cars: Where Do They Differ?

Benefits of New Cars

• Up-to-Date Features: When you buy or lease a new car you’re going to find all the latest in-vehicle technologies in the cabin. Comparatively, an older vehicle could be on the verge of having outdated technology.
• Better Gas Mileage: Automakers must rise to the challenge of improving vehicles’ fuel efficiency year over year to keep their models competitive. This means buying a new vehicle will give you the best available mpg ratings.
• Total Warranty Coverage: Investing in a new vehicle comes with full warranty coverage, often including bumper-to-bumper protection and powertrain coverage for several years and thousands of miles, depending on each company’s warranty details.

Drawbacks of New Cars

• Higher Prices: Of course, new vehicles are more expensive than used or certified pre-owned vehicles. You also have to consider the tax on that higher price and keep in mind that once the warranty expires you’ll need to keep up with maintenance out-of-pocket.

Benefits of Used Cars

• Lower Prices: You’re guaranteed to save at least a few thousand dollars on a used vehicle’s sticker price, thus also paying less tax on the initial purchase. What’s more, the cost to own a used car may be cheaper thanks to lower insurance rates.
• Slower Depreciation: New cars experience the bulk of depreciation during the first few years off of the lot. Often, a used vehicle has already depreciated a lot by the time you buy it and will depreciate more slowly from then on.
• Lower Risk of Negative Equity: Negative equity refers to owing more on your auto loan than your car is actually worth. If your car were totaled in an accident, you could be stuck paying back the balance even though the car isn’t driveable. A used car loan will probably have a smaller balance than a new car loan, so the risk of negative equity is lowered.

Drawbacks of Used Cars

• Higher Interest Rates: If you finance a used car, you’ll probably have to accept a higher interest rate and greater monthly payments. However, the loan shouldn’t take as long to pay off because of the lower price of the vehicle.

Whether New or Used, Hendrick Dodge Cary is Here for You

Looking for your next vehicle near Carrboro? We have a strong selection of new Dodge vehicles and RAM trucks at Hendrick Dodge Cary! If you’re drawn to the benefits of used cars, we also have an extensive inventory of used and CPO options. You can rely on our friendly sales associates to help you find the perfect fit for your needs. We also have an expert finance team to help pair you with a flexible lease or favorable auto loan. If you want to get a head start, you can prequalify online and use our payment calculator to estimate your monthly payment.

Shop and Save Online!

Whether you land on a new or used vehicle for your Chapel Hill commute, you’ll always find competitive prices at Hendrick Dodge Cary. Browse our new vehicle specials and used car offers for added savings! If you have any additional questions, contact us anytime to start a conversation.