should i buy and new or pre-owned vehicle?
Most of us enjoy the wonderful feeling of going out the door on a beautiful Saturday morning knowing on THIS day; a new (to you) vehicle is more than likely coming home today. The question often lies within each of us “Do I buy new or do I buy pre-owned”. Although this statement resembles something Shakespeare would have written if only there were cars in his day; the subject is reasonable…especially in 2016. At Perkins Motors we offer consumers wonderful new and pre-owned car choices, and want you to be the best equipped consumer. Here is some information to consider when it is YOUR time to buy a vehicle but are not quite sure if you are going the new or pre-owned route.
Why a new vehicle?
Reliability, updated ‘look’, low mileage and perceived safety are some topics JD Power & Associates outlined recently as reason for a new car. Here are some other reasons to consider when you are in the market for a brand-new vehicle:
New cars come with a warranty, and some are quite generous – Be sure to always asks us at Perkins what ours entail. This means that if something does break or fails to work as designed or intended; you can get it replaced at no cost.
When it comes to warranty coverage here are things to consider and ask about:
- Powertrain warranty
- Vehicle warranty
- Rust warranty:
- Roadside assistance program
- Fuel Economy
Most automakers are rising to the challenge. From installing automatic engine stop/start systems and cylinder deactivation technologies to building new vehicles with lightweight materials and aerodynamic designs, new cars are more fuel-efficient than ever.
Though consumer interest in efficient vehicles is directly correlated to the price of gasoline, car companies must strive to meet federal regulations lest they face significant penalties. That means that a new car will almost always be more fuel-efficient than a used car. In turn, that means a new car will make its owner happier when gasoline prices spike again (which could be any day now some experts suggest).
Flashy buttons and knobs are terrific and appealing to the eye, but a new generation of smartphone-native car shoppers is arriving in dealership showrooms. Internet connectivity, smartphone projection technology, voice-texting, and access to social media feeds are increasingly important to younger buyers. The newer the car, the more technologically advanced it will be.
This applies to safety technology, too. Collision avoidance technologies are proving to reduce accidents, and they are becoming more widely available in mainstream models. Ask if your car-to-be has this kind of advancements!
- Discounts? Yup, it is possible
When shopping for a new car, be on the lookout for a new vehicle in a competitive segment, perhaps one that isn’t selling as well as its competition, perhaps one that is left over from the previous model year, and you can secure a big discount, one large enough to help offset the vehicle’s loss of value the moment you drive it away from the dealership. Also, If you have the luxury of choosing a specific time to buy, it is better to wait until the end of the month, the end of the model year, or the end of the calendar year.
- Attractive Financing
Historically low interest rates and vehicle loan terms that commonly span six years have made new car ownership a reality for more people. Financial institutions also typically offer more attractive interest rates for new vehicles than they do for pre-owned vehicles.
Yes, often, the payments for a new vehicle are higher than the payments for a used vehicle, and it takes longer to pay off a new vehicle loan. However, for as long as buyers can obtain no-interest and exceptionally low-interest car loans, a new car could be within the grasp of someone who might otherwise have no choice but to buy a used car.
- Know your preferred vehicle’s history
When you buy a brand new car, you know that vehicle’s brand history. You know how it was cared for, where it was serviced, how it was driven, and whether it was involved in an accident. When you buy a pre-owned car, you never really know for sure as ‘items’ could be hidden from both the naked-eye and reported car history, that is just a fact.
While CarFax reports and stronger laws have helped to reduce the possibility that a used car buyer might get stuck with someone else’s problem, a new car is rarely a problem. And when it is, a warranty protects the buyer as previously stated in this article
What are the benefits of purchasing a pre-owned vehicle?
- Save Money
When purchasing a pre-owned car you often have an opportunity to save thousands of dollars compared to a new car. In fact, based on the data provided by industry experts, you’ll spend thousands less by choosing the average used car instead of the average new car. Why is this? New cars depreciate, and fast.
When you sign the paperwork for a brand-new car, drive it off the lot, take a ride around town, and then return the car to the dealership…it isn’t a new car anymore. It is a used car. And because it is a used car, it is worth substantially less than you paid for it just an hour prior. After three years, Consumer Reports says your new car will be worth just 54 percent of what you paid for it, on average. This is something to consider during the buying process.
Beyond the issue of depreciation, you’ll pay less sales tax on a pre-owned car, insurance for a pre-owned car costs less, and in Colorado it is cheaper to register a pre-owned car than it is a new car. The thing to remember is that these savings could be spent on a used car’s higher maintenance requirements. Decisions decisions!
If your decision is to buy a pre-owned vehicle we recommend spending a great deal of time talking with our sales team about the car of ‘choice’ as each brand has many highlighted safety features. In addition, Carfax and AutoCheck are the two biggest providers of vehicle history reports, and it is absolutely essential to obtain one when buying a used car. Using the vehicle’s VIN, either company can obtain a substantial amount of information on a used vehicle. Highlights of the kinds of information contained within a vehicle history report include:
- Number of previous owners
- Previous registration status (lease, personal, fleet, taxi, etc.)
- Accident, flood, repair, Lemon Law history
- Mileage validation
While a vehicle history report cannot identify every possible cause for concern associated with a particular used car, easy access to them certainly adds significant peace of mind when buying one.
Buying a pre-owned vehicle can be much riskier than buying a new car, because you don’t know with 100-percent certainty where that car has been and how it was treated, and there are no guarantees that significant problems won’t arise before you’ve got it paid off. That’s true when you decide to save thousands by choosing a used rather than a new car in exchange for a healthier bank account, you assume some risk, and perhaps lose a little peace-of-mind.
The good news is that today’s vehicles are manufactured better than ever in the automotive industries history and vehicle history reports can reveal important details about a car’s past.
As you can see there are benefits to both a new or pre-owned car. The reality is you must evaluate your needs, budget and lifestyle before making this very important decision. However, as you know, our expert team of sales associates at Perkins Motors are always going to be there for you to assist not only your decision in the ‘style’ of vehicle you purchase but whether pre-owned or new is best for you and your wallet. Good luck choosing and happy driving!