Are you looking to buy new car? Do you know if it is best to buy a used car or a brand new car? Which option will give you the best value? Buying a car and knowing how to make the best of your money can be hard to do if you don’t know the difference. Which type of car will hold it’s value the best? Let’s go over some of the advantages and disadvantages of a buying a used car.
One advantage of buying a used car is the value. The second you buy a new car the value of that car goes down in value. When you are buying a used car you have the advantage of finding something that is already below book value. A brand new car goes down in value more quickly the second it is bought.
Another advantage is that used cars are often priced below book value and they are also cheaper than a brand new car. You can find a slightly used car with few miles on it for much cheaper than a brand new car right off the car lot.
Another advantage is that there is a much bigger selection of used cars than there is of new cars. This gives you the opportunity to really shop around not only for the right car but for the right price. You can find the same car at several different dealers and at several different prices.
Now that we have a few advantages let’s look at some of the disadvantages of buying a used car.
One is that used cars are sometimes harder to finance. If the car is old and or has lots of miles on it, lenders aren’t likely to finance them. If you can find a lender for car with lots of miles or that is older it is often at a higher interest rate and they may require more down against the car. Oftentimes a dealer will have great financing options on a new car at lower interest rates than a used car would get.
Another disadvantage to buying a used car is that the dealer may not be able to offer a deep discount on the car you want. The dealer has obtained that car at a certain price and they have to protect their investment and make sure they are getting a good deal also. On a newer car they have much more wiggle room to make a discount on the price.
Whether you want to get a new car or a used car, Loan Stop may be able to help you with short term down payment on the car you want.