Should You Buy A New or Used Model Car?

By Paul Crosby, TestDriveNow.com

The oldest question in the car-buying universe is “Should I buy a new car or go for a used model?” It is an easy question to ask, but the answer is a bit more complicated. Buying a new or used car is a major purchase decision, second only to buying a home. It is a decision that should not be taken lightly, and the more informed you are about the cars you are considering, the better off you’ll be. As a consumer searching for your next vehicle, times have never been better. There are thousands of models to pick from and a virtual tidal wave of information available about any new or used car in today’s market place. Once you have narrowed down your list of possible cars, take some time and do your homework on the vehicles you are most interested in. Once you have done your research and are at least a little familiar with the cars, it will make the whole new versus used decision that much easier.

Let’s start with the pros and cons of purchasing a new car. As anyone who has ever purchased a new car will tell you, there is nothing better than the day you take your brand new ride home. New cars are fantastic; everything is perfect and factory fresh. When you buy a new vehicle the benefits are numerous. First and foremost is the factory new car warranty. Depending on the manufacturer, the new car warranty can range from two years/24,000 miles all the way to 10 years/100,000 miles. The time and mileage allowance tends to have an inverse relationship to MSRP of the car (i.e. less expensive cars tend to have longer warranty coverage). And let’s not forget a new has a clean slate – no stories or hidden secrets.

But this peace of mind comes at a price. New cars are obviously more expensive than their pre-owned counterparts (sometimes twice as expensive for the exact same model that’s a year or two older). This single reason is the number one argument for purchasing a used car. A large number of clients I have spoken with say “let somebody else take the hit on the first two years of depreciation, I will buy a low mileage two-year-old car for half the price of new one, thanks.”

As for a used car purchase, there is no other purchase that an individual can make that has as many potential pitfalls (financial, emotional and possibly physical) as a used car purchase can. The flip side is that a used car purchase has many tangible benefits versus buying new when purchased correctly. Just like buying a new car, the consumer looking into a used vehicle must do their homework on the vehicles that interest them. Whether you are purchasing a used car from a dealer or private party, the most important thing you can do is ask a ton of questions. The only silly questions are the ones you don’t ask! Here are a few critical points to touch on:

• The number of owners the car has had since new (buying a car from the original owner is always the best).

• Has the vehicle ever been in an accident? The CARFAX reports you can find online for free are a great start, although they do not give much detail on accidents. Ask the owner directly for details of an accident and how the car was repaired.

• How and where was the vehicle used primarily? Cars that live in the city and deal with endless stop and go traffic are always going to be in comparatively worse shape than similar cars with a lot of highway miles.

• Has the vehicle been stored outside or garaged? Vehicles that are stored indoors will usually be in better cosmetic condition than those that are stored outside on the street. The sun’s rays and environmental fallout all work against that nice shiny finish, especially the cars vinyl and rubber exterior components.

• Are there accurate service records available? This goes a long way towards proving the car was properly maintained by its previous owner.

These are just a few of the most important questions that should be addressed before any used car purchase. Sellers may not always have all the answers, but always trust your instincts. If you are not convinced that the seller is being completely truthful and upfront with you regarding the condition of the car, move on down the road. There are thousands of cars to pick from. Do not let your emotions get in the way here – it could cost you dearly. On the other hand, a seller’s lack of information can be used to your advantage when it comes time to negotiate the price of the car.

Though buying used does have its perils, there are some excellent benefits to going this route. More often than not, you can get a lot more vehicle for your money versus going with a comparable new car. Whether this means a bigger car, more expensive options or larger/more powerful motors is entirely up to your personal preference. Another benefit of buying a used model is the knowledge of how the car holds up in the real world. Once a car is on sale for a few years, owners and the motoring press will document any inherent problems with the car. There is not a used car alive that can hide from the Internet chat rooms and forums. All of the problems are out there on display for the whole world to see.

Keep these tips in mind when choosing a new car versus a used car. Do your homework, test-drive as many cars as you can and have fun.