The decision to buy a new or used vehicle can be tough. So what's the best option for you - New or Used?

The biggest difference you will find between buying a New or Used car is the interest rates offered for financing.  New cars tend to have lower interest rates; however, used cars tend to be more reasonably priced.

Pros & Cons in purchasing a New vs. Used Car

New Cars include factory warranties, the latest and greatest features, the most recent body style, better gas mileage and safety records.  As mentioned before, buyers will find lower interest rates are offered on new cars, even 0% for qualified buyers with great credit.

However, new cars lose about 40% of their value within 3 years, at which point the depreciation starts to slow down.

Used Cars will depreciate less.  The previous owner has absorbed the biggest or steepest portion of the depreciation cycle.  Additional benefits of buying a used car include:

• Lower purchase price
• Lower depreciation
• Lower financing costs (in the form of fees and interest paid)
• Lower registration and license fees (which are usually tied to the value of the car)
• Lower insurance premiums

The downsides to purchasing a used car include an increased chance for expensive repairs not convered by warranty, reduced reliability, and high maintenance costs such as replacing tires, the battery, brakes, and muffler... all of which may be on the horizon.

Get a free price quote on any New or Used vehicle through Edmunds.com.  You may also see how much car you can afford by filling out a free application with Car.com.  They will find the best rates for purchasing a new vehicle through a network of national lenders.  

You Have Other Options

Car Refinance is becoming more popular, and a great way to save money toward buying a new vehicle.  Typically you will be able to lower your interest rate, especially if your credit score has improved since you originally purchased your car.  Apply today with our friends at RateGenius to see what savings options are available for you through refinancing your current vehicle.