Deciding on whether to buy a new car or a used car can be a difficulty decision. Below, we have outlined what we feel are the disadvantages and advantages of each. Remember, what may be important or considered an issue to one person may not be significant to another. Basically, it all comes down personal preference as to what your needs and wants are.

If you have any questions please feel free to contact us. We recommend that you also read the auto purchasing tips page before applying for an auto loan. This page will help you in your decision in determining if purchasing a new car or a used car is better for you. The auto purchasing tips page will also help you decide what your needs are and wants are as well.

New Cars
Advantages of new cars:
1. Warranty: Complete factory warranty.
2. No potential abuse.
3. Factory support.
4. Lower financing rates are associated with auto loans.
5. Full range of leasing options.
6. Lemon Law coverage.

Disadvantages of buying a new car:
1. Higher price.
2. You take the hit for depreciation.
3. Limited price variation.


Used Cars
Advantages of used cars.
1. Lower price.
2. Initial depreciation has already been taken.
3. More price variation (you can always go one year older on a similar vehicle and pay less).

Disadvantages of used cars.
1. Warranty: May only have balance of factory warranty or no warranty at all.
2. Where has it been?
3. How has the car been treated?
4. Limited or no factory support.
5. In general, used car loans have a higher financing rate.
6. Limited or no leasing options.
7. Limited or no Lemon Law coverage.