Ready to get a new car? When it comes to buying a vehicle, you have three main options: purchasing used, buying new, or leasing. Each choice comes with its own set of pros and cons.
At City & County Credit Union, we want to provide you with a clear understanding of the different car-buying routes so you can determine the best approach based on your needs and budget.
Used Cars: Lower Prices but More Maintenance
Opting for a used car generally means getting a lower price tag upfront compared to a brand-new vehicle. When considering used cars, there are a few key pros and cons to weigh:
Pros:
- Lower upfront costs than new
- Opens the door to higher-end models you may not afford new
- No instant depreciation like new cars
- Lower insurance rates than new cars
Cons:
- May need repairs and maintenance sooner
- Lack newer tech and safety features
- No warranty protections
On the downside, used cars come with some inherent drawbacks. Their age means you may need to spend money on maintenance and repairs sooner rather than later. Used vehicles also lack some of the latest tech features, updated styling, and advanced safety systems you’d find in newer models. Additionally, used cars do not come with any warranty coverage.
New Cars: Cutting-Edge but Expensive
If you decide to purchase new, you’ll of course get to take advantage of the latest automotive engineering advancements. That brand-new car smell and feel are hard to beat too! When weighing the pros and cons of buying new, keep these factors in mind:
Pros:
- Newest tech, performance, and safety
- Warranty coverage provides peace of mind
- More financing and incentive options from dealers
Cons:
- Expensive upfront costs
- Instant depreciation once purchased
New vehicles also come with manufacturer’s warranty coverage, giving you peace of mind and protection should any issues pop up. You’re more likely to find enticing financing rates, rebates, and incentive offers on new cars as well.
The trade-off for all the shiny newness is the higher price tag. Brand-new cars come with steep upfront costs. As soon as you drive off the dealership lot, your new purchase drops in value due to depreciation too.
Leasing: Lower Payments but No Equity
When weighing the leasing option, monthly payments are typically lower compared to financing a new car purchase. Leasing also allows you to always drive a relatively newer vehicle since typical lease terms run 2-3 years. Little to no down payment is usually required when you lease as well.
Here are some key pros and cons to consider with leasing:
However, leasing comes with trade-offs. You do not end up owning the vehicle or building any equity in it the way you would if purchasing. Lease contracts come with annual mileage limits and charges for excessive wear and tear. While the monthly payments are lower, leasing a car often ends up costing more in the long run compared to buying the same vehicle.
Get Guidance From the CCCU Experts
As you can see, each car-buying approach has its own mix of pros, cons, and costs. Choosing what's right for your situation involves balancing your budget, driving needs, and financial goals. But don't worry, you don't have to figure it all out alone.
CU Auto
We've got a little something special for our members - a totally free car-buying service called CU Auto. With CU Auto, we'll help you find the perfect vehicle you've been dreaming of and bring it right to your nearest branch for financing. And that's not all! We can even assist you in trading in your current ride for top value. So why wait? Let us take the hassle out of car shopping and put you on the road to success!
Regardless of whether you are a member or not, the auto loan advisors at City & County Credit Union are here to steer you in the right direction. We're prepared to assist you in evaluating your options and discovering the ideal car-buying strategy for your unique circumstances. Let's empower you to take control of the wheel!
