Should You Buy Your Car Used Or New? | 2018 Updates

The cost of purchasing a new vehicle has steadily risen over the past several years, leading to an increasingly larger gap between the price of new cars vs used cars. High demand and heavy competition has lead to new cars coming full of technology and fancy gadgets, in addition to being larger and faster. The average cost of a new car reigns in around $37,000, while the average cost of a car after 3 years of use hovers around $23,000 In 2018, the average new car payment was $536 per month, compared to about $463 per month in 2013.

So the question remains – is it better to buy new? Or used?

While new cars often come with a better warranty and more peace of mind, depreciation is a hidden cost most don’t take into consideration. On average, a new car loses 20 -30% of its value the moment it rolls off the dealer’s lot. Some cars can depreciate up to 50 percent in the first three years!

Say you bought a new car for $25,000.The second you take it home, it’s already lost around $6,000 in value. That’s $6,000 that just went down the drain!

Conversely, if you were to find the model that was released 3 years ago, you would be saving thousands of dollars, have a car that’s still in great shape, and lose way less in depreciation than you would if you were to buy new.

By taking a used car  into a mechanic (like World Class Auto 😉 ) for a pre-purchase inspection, you can still enjoy the same peace of mind you would have if you were buying new. It’s a great way to save money and ensure that you’re making the right investment.

A thorough check-up examines mechanical, safety, and appearance aspects, such as the vehicle’s:

  • Tires.
  • Frame.
  • Suspension.
  • Glass.
  • Lights.
  • Brakes.
  • Radiator.
  • Hoses.
  • Belts.
  • Fluids.
  • Battery.
  • Body condition.
  • Exterior surface.

The best inspections also include a road test and a computerized engine analysis. Some comprehensive examinations also evaluate the condition of the instrument controls, pedals, seats, and sound system.

That’s not to say that buying a new vehicle is always a bad idea, but depreciation and the increasing gap between buying used vs new are definitely important to take into consideration before making a decision. You can use Kelley Blue Book’s  Cost of Ownership calculator designed to figure the average five-year costs of any vehicle, including depreciation.

If you do decide to buy used, come into World Class Auto for a pre-purchase inspection that will provide peace of mind and ensure you’ll end up with the best car for you and your family. Call ahead for an appointment or stop on by – walkins are always welcome!