New Versus Used - Cost of Vehicle or Cost of Maintenance

I want to address this age-old question of New vs Used - Cost of Vehicle or Cost of Maintenance! This topic has been debated over the years and many people still are confused if they should by a new vehicle or get a used one.

In the rest of this article I'm going to share some information that can help you discern if a new or used vehicle is best for you.

As the prices of new cars continue to rise every year, more people are looking at quality used cars. The days when used cars meant trouble are long over. New car manufactures are fighting this trend with new incentives including rebates, low interest rates and other programs for attracting new car buyers.

The Benefits of Buying New Vehicles:

The "new car" smell is one of the many reasons people like a new car. Some other benefits are.

Status Symbol: With a new car you get pride of ownership and peace of mind knowing you are the first owner. No one else has driven it and it still has the "new car" smell. For some people, buying a used car just isn't an option. They want to select all the options and features along with the color they want.

Warranty Coverage: You don't have to worry about warranty work for the first three years, and some warranties last even longer. Some luxury models are 50,000 to 60,000 miles. If something goes wrong during this period the dealer and manufacture are responsible for the repairs.

Reduced Maintenance: Usually a new vehicle won't need much maintenance for the first several thousand miles, besides the oil change and maybe a tune-up. Today, some manufactures even cover these costs.

Peace of Mind: If you get a lemon with a new car, you have legal recourse through the state lemon laws. You could get a replacement vehicle or your money back if you can prove you have a lemon.

Having a new car feels great! And, you get all the newest and latest safety and technical gadgets.

The Benefits of Buying Used Vehicles:

If a vehicle means transportation for you and it's not a status symbol then a used vehicle may make more sense. Late model vehicles make good financial sense and are safe to buy.

Depreciation: You miss out on the heavy loss of depreciation. A new Honda Accord LX sells for about $22,500. If you buy a similar car that is two years old with 25,000 miles, you will pay about $5,000 less. And this is for a car that holds its value well.

Increased Choice: There are more cars for you to choose from and usually you get more car for your money. Certified pre-owned cars can also help bridge the gap between a new car and a used one. A certified pre-owned car is subject to an intense inspection and repair process, and usually covered by a warranty from the manufacture. They may cost a little more, but they can provide you with the peace of mind you are looking for in your next used vehicle.

In the end, the age-old question of...New vs Used - Cost of Vehicle or Cost of Maintenance is up to you and what you feel comfortable with. If you are looking at stretching your car-buying dollars as far as you can, then it's hard to beat a used car.