Whether you’re thinking about buying your first car or replacing an old one, there’s a big decision you need to make right away: Should you go for a new car or a used one? This choice will largely determine where and how you’ll shop for your vehicle.
Although money isn’t the only factor to consider, it plays a big role in your decision. Here are some key financial points to keep in mind when buying a car:
These basic facts will confront you as you make your choice. There’s no clear-cut advantage between getting a new car or a used one. For instance, you might get a new vehicle with monthly payments similar to those for a used one but without the worry of repairs. Alternatively, you could purchase a used car outright with cash, save a lot on insurance, and have no monthly payments at all. Whatever you decide, it’s important to ask yourself a few questions before you start shopping.
Ultimately, your decision should align with your financial priorities regarding your vehicle. Consider these three questions:
By answering these questions, you’ll be much closer to deciding whether a new or used car is the right choice for you.
