Should I Buy a New or Used Vehicle?

  • By Sikorsky Credit Union
  • June 29, 2021

Are you ready to drive home new wheels? Buying a new car is a big decision. Like any big decision, it’s important to do your research. Give some thought into whether you prefer a new or used car. There are many pros and cons to both. Here are some things to keep in mind:

Costs: Used cars are often less expensive, so if you are looking to save it’s worth considering. It’s easy now to do your research on used vehicle history with websites like Carfax and Autocheck.  You can find out the vehicle’s maintenance history, how many owners it has had and information about collisions and repairs. If you are looking for a used vehicle but want to make sure it’s in tip top shape, consider a Certified Pre-Owned Car. These vehicles are usually gently used, no history of major accidents and closely inspected by a dealer.

Longevity: New cars tend to last a bit longer, especially depending on how old a used car is. A used car can last longer if it has low mileage and less wear and tear.

Insurance: Insurance rates are usually cheaper for used cars because the insurance company will price a large part of your policy on the cost to replace your vehicle. Used cars tend to be less expensive so replacing it won’t cost as much.

Fuel Efficiency: Newer cars tend to have better fuel efficiency, so while you may pay more for a newer car up front, in the long run you could save because you aren’t paying as much for fuel over the long term.

Interest Rate and Terms: You can get a low interest rate on both new and used vehicles, however the longer the term the higher the interest rate could be on a used vehicle. The higher the interest rate, the higher the monthly payment.

The Bells and Whistles: Newer cars tend to have more bells and whistles, which is part of the reason the price is more. If newer features like the GPS or Apple Car Play aren’t that important to you, opt for an older model and save.

If you are considering a new or used vehicle, contact Sikorsky Credit Union for your auto loan financing. Our rates are low and approvals are fast. Learn more.