New vs Used: 5 Things to Consider When You’re Car Shopping

Has your car finally bit the dust? Believe it or not, it’s perfect timing. Car rates are only going to rise, so now’s the time to start looking for something else. The question is: do you go new or used?

Don’t settle for less

Getting a used car isn’t a bad idea. It can save you quite a bit of money, you may be able to avoid taking out a loan and the interest rate won’t be as high.

But, as the saying always goes you may be getting what you pay for. Although you may be getting a certified pre-owned vehicle—a car that was previously owned but has since been traded in and it certified in good or excellent condition—you’re still getting someone else’s history.

When you get a new car, although it’s a little more expensive, you’re starting from scratch. This means more longevity on your car, no potential issues due to the history of the vehicle and you’ll be the one to break it in.

Ask questions, even the annoying ones

If you’re looking at a used car—especially a specific make and model—look on Kelly Blue Book or Consumers Digest to see if what they’re asking is a decent price.

Get its history. Carfax gives all potential car owners the complete history on a used vehicle, most dealerships will, as well. If they don’t have it listed with the purchase price, make sure you ask the question.

If you’re looking for a new car, check out how other dealerships are comparing. You can still use Consumers Digest to get the overall rating on a new vehicle and it will tell you whether there have been any issues or recalls.

Keep a budget in mind

Newer cars tend to be more expensive. Between the financing fees, insurance and interest rate, you may be spending a pretty penny just out of the gate even if you have a loan.

So, if you’re looking to save, it might be in your best interest to purchase or finance a used vehicle until you save up enough money to buy a new one.

Know what you’re looking for

If you’re looking for something that’s going to last you awhile and is good on gas, a new car is the way to go.

Essentially, you’re starting from scratch with everything and newer cars are built to be more energy and gas efficient due to a higher standard for emissions testing and the influx of environmentally friendly initiatives.

If you’re just looking for something to get you from point A to point B every day, and you’re not as worried about efficiency, then a used car may be the best option for you.

Research, research, research

The better prepared you are, the more you know what you’re looking for.

Check out reviews of cars that you’re looking at. Look at the past models and the used versions, and check out the new versions. Compare the costs in the past, investigate how much the regular maintenance may cost you and ask your insurance company which is the safer option or most cost effective option for you.

The bottom line:

Neither option is right nor wrong, it’s only what works for you.

Make sure you do your research, make sure you ask all of the questions—even if you think it’s annoying—this car is something that you’re going to have to pay for. Make sure you’re getting what you want and you aren’t doing so with blinders on.

Compare prices. Look at how much everything is going to cost: from purchasing the vehicle, to the fees, to maintenance and even insurance. For instance, newer vehicles that are being financed require both comprehensive and collision insurance. You need to determine what works best for you and your budget.

And, assess what you want to get out of it. Whether you’re looking for the long haul or you’re just looking for something to get by can be a big deciding factor in your purchase.

Whatever you choose, make sure you’re staying safe—don’t choose a vehicle just because it’s pretty and don’t choose auto insurance that’s cheap. Remember, what you pay for is what you get.