New or used cars: Which are better for you?

For some consumers, any car is a new car if they've never owned it before. However, you may be interested in the truer sense of the word: few miles, no previous maintenance issues and no previous owners.

While new cars come with several perks, such as a lower chance of a breakdown within the first few months of ownership, used vehicles can offer great value for a nice price. Most of the decision is determined by your budget for other expenses and what is currently in your checking account, but there are other factors to consider.

Here are some steps for helping you make the decision:

  • Use our car loan calculator. Before applying for one of our auto loans, use our handy online calculator to estimate how much you can afford to pay on a loan each month. This tool allows you to adjust the monthly payments, down payment, trade-in value, loan term and interest rate, so you can estimate your expenses.
  • Consider whether you need a new car. The smell and look of a new car are both appealing but tertiary reasons to purchase a new vehicle. A car is an investment that depreciates over time, so keep in mind the expensive amenities you may get with a new one won't be nearly as valuable when you're ready to sell.
  • Think about the repair costs of a used car. Even if you get a used vehicle with a clean maintenance history and only a few thousand miles, there's a higher chance that you'll need to bring it in for repairs compared to a new car. 

For more information about smart ways to manage your finances, contact Landmark Bank.

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