Summer is a great time to buy a new or used car.
Towards the end of the summer especially, dealerships nationwide mark down their existing inventories as they bring in the cars for the upcoming year. Used vehicles may also be marked down to make room for incoming inventory.
Whether you decide to buy a new or used vehicle, the decision depends on what you can afford. You can utilize free online calculators to help you determine monthly payments at various rates, such as the Farmers Insurance Federal Credit Union loan calculator. Do your research carefully and take your time to find the best deal that fits your budget and meets your needs.
New or used?
It can be a tough choice. Below are some tips to take with you the next time you head out to shop for a new or used car.
Buying Used
Save Money – You can save thousands of dollars on a used vehicle and still drive the model that appeals to you.
Abundant Choices – When car sales are slow, used car lots have larger inventories giving you more choices for the make/model you want.
Better Reliability – Whether you buy American or an import, buying a used car is much safer than it used to be. With the internet and buying guides, you can research the best vehicles and compare costs and features so you can make a better, more informed decision. CARFAX® will even provide you with a vehicle’s repair history. Be sure to get everything you are promised in writing such as warranty agreements. Plus, for peace of mind, you can purchase an extended warranty from one of the leading companies that sell them online, for an additional safety net.
Buying New
Lots of Options – With a new car you get to choose the color, features, and extras. Many consumers buy off the lot; however, dealers can also get a model or color you want from another dealer. You can also build your own customized vehicle on major car brand websites, and the services will track down the car for you. Just be aware that getting the “perfect” vehicle may come with additional delivery fees or other charges, depending on the location.
Low-cost Maintenance – With a new car, most of the time you only pay for an oil change every few months or 5,000 miles. Warrantydirect.com suggests to be weary of dealers that provide unnecessary “services”, such as frequently lubricating door locks, and be very clear about what you want whenever you take the vehicle in for service. Get an estimate upfront for protection.
Warranty Protection – New vehicle warranties typically cover 3 years or 36,000 miles, but an increasing number of manufacturers are going to 4 or 5 years and 50,000 to 60,000 miles for factory-installed parts. Several major brands provide major powertrain coverage (motor, transmission, driveshaft, etc.) up to 100,000 miles. Regardless of the warranty you get, be sure you understand what it covers.
Legal Protection – All states have what are called “lemon laws” that protect you in case the new car you buy is a lemon, with problems that just can’t be fixed under warranty. If that happens to you, you may be entitled to a replacement vehicle at no extra cost to you, or a full refund.
Free Roadside Assistance – As long as your new vehicle is under its manufacturer’s warranty, in most cases you will also receive free roadside assistance. This is especially good for peace of mind when you travel.
In the end, the decision is up to you whether or not to go with a new or used car. With research in hand, you will be able to make a better-informed decision and know what will work for your budget and long term needs. Remember that a car is a significant investment that is tied to a long term commitment; take your time before you make a final decision based on the tips provided above.
