Financially Smart Car Buying: New or Used?

Couple happily driving in a car, with the woman holding a map and the man smiling at the wheel

When it comes to car buying, one of the most significant decisions you’ll make is whether to go for a new or used vehicle. There are benefits and drawbacks to both options, and understanding the financial impacts of each is crucial to making an informed decision.

Buying a New Car
Buying a Used Car
  • Latest technology and features
  • Full manufacturer’s warranty
  • No existing wear and tear
  • Potentially lower maintenance costs in the short term
  • Lower purchase price
  • Depreciation has already occurred, reducing value loss
  • Lower insurance costs
  • Lower taxes and fees
  • Able to verify the vehicle’s reliability through consumer ratings and reviews
  • Higher purchase price
  • Depreciates significantly in the first few years
  • Higher cost of insurance and registration
  • Higher taxes and fees
  • May have limited negotiating power on price
  • Limited warranty
  • Wear and tear, and potential hidden damage or mechanical issues
  • Higher maintenance costs in the long term
  • Potentially higher interest rates for auto loans

Regardless of which option you choose, it’s important to weigh the benefits and drawbacks of each. Consider your financial goals, budget, and needs both now and in the future as you make your decision. If you’re interested in a new car loan, Allegacy offers up to 100% financing, competitive rates, an affordable monthly payment, and a fast loan approval process. The credit union auto loan can be paid off through payroll deduction or automatic draft, and there’s a 60-day approval period. If you prefer buying a used car, Allegacy also offers used car loans with competitive interest rates for qualifying buyers.

Need help deciding? Allegacy has auto loan calculators to help you estimate payments based on the chosen vehicle, loan term, and credit score. You can also schedule an appointment with Allegacy’s auto loan team to discuss the financing options available, including credit union auto loans and new car loans.When purchasing any car, it’s essential to do your research. With the help of Allegacy’s resources and expertise, you can make an informed decision on whether a new or used car is the right financial choice for you.

Share Post

Unlock. Drive Off.

Allegacy has options to help make car ownership more affordable for you. With competitive terms and up to 100% financing.

Learn More