People say, “you lose half the value of a new vehicle when you drive it off the lot.” With so many makes, model years, and generations of vehicles, a blanket statement like this isn’t completely accurate, but it isn’t far off. There are a few reasons why we believe there is a sweet spot for vehicle purchasing, and we thought we'd share the information with all of you. So here are the positives and negatives with buying new VS. used.
Used vehicles have more than a few kilometers, sometimes are kept in good condition and most times have some unforeseeable issues that will come up down the line. Vehicles don’t run forever, and most of the time there’s no way to tell for sure that the vehicle was properly taken care of unless it was serviced at its dealership for its entire life, and even then things can go wrong. For these reasons, it's difficult to get financing for a used vehicle, and even if you do, you’re much less likely to get a good interest rate. Banks and Lenders realize that used vehicles are more likely to break down, causing you to-in some cases-spend money you don’t have to get it fixed and-potentially-miss a payment or not pay the loan off in its entirety. Although not true in all cases, the saying with buying a used vehicle is: “The money you save in the used market, you’ll spend at the mechanic shop.”
With new vehicles more than anything, you spend more money. As you’ve probably heard before, a vehicle is a depreciating asset, and you lose the most money on a vehicle if you finance a brand new car through a dealership. Don’t get me wrong there are definitely some benefits to buying a car brand new: You get to drive away a vehicle that has never been owned by anyone but you, the vehicle has a fresh warranty for your peace of mind, and standard features on new cars are getting better and better by the year, so you’ll likely see higher-priced options come standard on new vehicles, such as Bluetooth, blind spot monitoring, etc. Buying a brand new car is a luxury, and luxury doesn't come cheap.