Is It Better to Buy a New or Used Car?

Used Mercedes-Benz G-Class


If you’re looking to upgrade your Chandler or Scottsdale commute, you may already have an idea about the type of car, truck, or SUV you want. However, there are some other decisions you’ll have to make in advance. For example, is it better to buy a new or used car?

In this guide from iAUTOHAUS, we’ll compare the advantages and disadvantages of new vs. used cars to help you decide which is the best fit with your lifestyle and budget. If you decide that a pre-owned vehicle is right for you, head on down to our dealership in Tempe to explore our inventory of high-quality used luxury vehicles today!

New vs. Used Cars: What Are the Differences?

When comparing new vs. used cars, it will ultimately come down to what you need, what you can afford, and what your preferences are. Take a look at some of the pros and cons of new vs. used cars below.

New Car Advantages

  • Newest Technology: As automotive technology continues to be updated year after year, a vehicle that’s even just a few years old can be considered outdated. When you buy or lease a brand-new car, you’ll have access to the latest tech and safety features.
  • Greater Fuel-Efficiency: Automakers are producing more vehicles equipped with turbocharged engines that deliver stronger performance with greater fuel economy returns. In addition, new hybrid and electric vehicles come with innovative powertrains that can boost efficiency even more.
  • Full Warranty Coverage: New vehicles typically come with warranty coverage for most of the car’s components for a certain amount of years and miles. New vehicle warranties also often include roadside assistance and coverage for many routine maintenance services.

New Car Disadvantages

  • More Expensive: The sticker price of a new car will be significantly higher than that of a pre-owned vehicle, and once the new vehicle warranty expires, it can often be more expensive to repair and maintain.

Used Car Advantages

  • More Cost-Effective: Used car prices can be as much as 30% less than new cars. That means it could be possible for you to upgrade to a premium luxury model or electric vehicle that you may have previously thought was out of your price range. You will also save on your auto insurance coverage and taxes.
  • Slower Depreciation: The value of a new car can decrease as much as 11% as soon as you drive it off the lot. Used cars have already taken this initial depreciation hit, so they depreciate at a much slower rate as they continue to age.
  • Less Chance for Negative Equity: Negative equity is when you owe more on your car loan than what the car is worth. So, if the car is lost or irreparably damaged, you may get stuck paying on the auto loan, even though you can’t drive the car. You’ll have a smaller car loan when you finance a used car, so it’s less likely that you’ll end up “upside down” on the loan.

Used Car Disadvantages

  • Higher-Priced Financing: Lenders tend to charge higher interest rates on used-car loans which can result in higher monthly payments. However, the purchase price of the vehicle will be lower, so the loan term length will be shorter.

Check Out the Used Luxury Cars at iAUTOHAUS Today!

Is it better to buy a new or used car? As our new vs. used car comparison shows, it really depends on your budget and Phoenix-area driving needs. At iAUTOHAUS, we offer a fine selection of used luxury vehicles, all in top condition and affordably priced. Along with our featured inventory of used cars priced under $20K, we also offer pre-owned vehicle specials to help you save even more. If you have any questions or would like to learn about our used car warranties, please don’t hesitate to contact us.

 

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