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Deciding between purchasing a new or a used (pre-owned) vehicle can be a difficult decision. Used cars are generally much less expensive, however the appeal of driving off the lot in a car with zero miles on the odometer is undeniable.
Before you buy, make a list of the features you are looking for in a car. Is an extended warranty important? Do you want a car with the latest safety devices and “entertainment” for your kids? Determine your budget and do your research to determine which cars fits your needs.
Consider the pros and cons:
Pros of Buying a New Car
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Personalization
You can pick everything from the make and model to the color of the seats.
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Worry-free driving
New cars come with factory warranties and extended warranties that offer everything from 24-hour roadside assistance to trip-planning services.
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Dud Protection
The law is on your side if the car you buy turns out to be a lemon. Under the “lemon law,” new car manufacturers must fix defects that occur within the first 18,000 miles or first two years and were covered under the manufacturer’s warranty.
• Cheap Financing
Lenders will offer the very best interest rates to new car customers with good credit.
• Safer
New cars come equipped with the latest safety equipment. For some, this is very important.
• All the Bells and Whistles
When you buy new you can choose from the latest options and electronic gizmos. Some new cars feature DVD players and stereo systems with separate controls for the front and back seats.
Pros of Used Car:
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Lower Cost
Used cars are generally much less expensive to buy. The average used car costs less than half the price of the average new car.
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Near-new Car Deals
Vehicles that were previously leased or used as a company car are often available at a good price and with low miles. Some come with a special warranty or part of the original factory warranty intact.
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Negotiating Power
The newspapers are full of people trying to sell their used cars, many ready to slash their asking price to make the sale. Deals are there for the making.
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Less Depreciation
A new car can lose as much as 20% of its value in its first year on the road. When you buy used, that depreciation has already occurred.
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Lower Insurance Costs
Used cars generally cost less to insure.
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Staying Power
Buy used and you can use consumer reports to select a car that is a both dependable and affordable.
Making a decision between a new or a used vehicle is a difficult one, but giving it careful consideration will enable you to make the best decision for you and your family.
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