Buying a new car vs buying a used car

Loans
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3
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Buying a New Car Vs. Buying a Used Car

Some people know right away which car they want when they start to shop for a car, while others struggle with making a decision. Car shopping can be stressful, and one thing to consider when you’re looking for a vehicle is the tradeoff of buying a new car vs. buying a used car. A used car saves you money upfront, but does it save money long-term? Is the much higher price of a brand-new car really worth it?

Pros and Cons of a New Car

When you decide to buy a new car, you enjoy the latest technology and the latest fuel efficiency standards, and you get to customize the car the way you want it. You’ll probably have a warranty and roadside assistance, which may save you money. You may be able to obtain an attractive financing deal at very low-interest rates if you have good credit.

The big disadvantage of buying a new car is cost. Not only does a new car typically have a much higher price tag than a used car, but it also costs more to insure. New cars depreciate more quickly than used cars, which means they start to lose value as soon as you drive off the dealer’s lot.

Pros and Cons of a Used Car

A used car costs a lot less than a new car both in the purchase price and the cost needed to insure the vehicle. Some used cars come with a warranty. A disadvantage of shopping for a used car, though, is you’ll have a harder time getting exactly what you want. A used car will also have higher mileage, which could reduce its lifespan, and it may need repairs sooner due to its age and the wear and tear it experienced from the previous owner.

Getting Ready to Buy a Car

The decision to buy a new or used car is ultimately up to you and depends on what’s most important to you. Whichever car you choose, it’s a good idea to make sure your credit is in good shape before you try to get a car loan. If you haven’t been in the habit of paying bills on time, get caught up on your bills and start paying on time every month so you can build a good credit history

Find out what’s on your credit reports and make sure there is not any inaccurate information on any of your credit reports. If any of your creditors are reporting incorrect information, it can harm your chance of getting a good financing deal. A higher interest rate on a car loan means you pay a lot more over the course of the loan.

This is why it’s important to dispute any errors you find on your credit report right away. Dovly is an automated credit repair engine that can help you with this process. Try it risk-free with our free membership tier. Get in touch with Dovly today.

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