New or Used: Deciding Which Option is Best
Making the right decision
What does your present vehicle cost to operate each year?
Ownership expenses- the price of your vehicle, insurance, finance costs, documentation expenses (registrations, inspections) and depreciation
Operating expenses- fuel, oil, maintenance, repairs, new tires. As a vehicle ages these expenses go up
How satisfied are you with your present vehicle?
Another vehicle could give you additional safety features, increased fuel economy, less operating/ownership expenses.
It’s foolish to spend more money fixing up an old vehicle than it will be worth on the present market when you’ve finished sprucing it up. Determine blue book value and compare it to mechanic’s estimate. (side note: partner with mechanics they get 15% of their referral)
Replacement Options: New or Used?
Advantages of buying new
Safety features (air bags, integrated child seats, structural reinforcements, etc) Technological improvements (steering and suspension, etc) No past problems/neglect/repairs Prestige Better gas mileage |
Advantages of buying used
Used vehicles are more affordable Trend is they cost less to own and maintain Can become a “classic” |
In terms of used cars being more affordable new cars expenses are as follows;
Registration, licensing fees, insurance premiums are higher
Dealer preparation fees, destination fees and shipping fees are incurred for new cars only
30 to 40% of a new cars value depreciate in the first 2 years so its better to own after 2yrs.
Well maintained vehicles can go over 150,000 miles
Registration, licensing fees, insurance premiums are higher
Dealer preparation fees, destination fees and shipping fees are incurred for new cars only
30 to 40% of a new cars value depreciate in the first 2 years so its better to own after 2yrs.
Well maintained vehicles can go over 150,000 miles