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New Car Smell Can Be Added To A Used Car

There are many different opinions on the advantages and disadvantages of buying a new car. There are just as many opinions regarding used cars for sale. Some very wealthy people have never bought a new car in their lives. Then there are those who refuse to buy used, regardless of their financial situation. They would rather buy a brand new beater than get into a high quality vehicle that has had someone else behind the wheel. After all is said and done, it really comes down to personality and goals when deciding between new and used cars.

Selection
The selection factor goes hands down to new cars. For popular brands like honda, toyota, ford, BMW, etc it is definitely possible to find a used car. The internet makes it simple for someone to search around the corner or across the country for that perfect used car.

Price Matters
Even in today’s ultra-competitive new vehicle market where MSRP has been replaced by Invoice as the starting mark for price negotiations, a car still loses 10%-20% or more of its value the moment it hits the street. Low mile used cars a year or two old can be dramatically less expensive than its brand new counterpart. There are exceptions – Honda cars, for example, tends to lose less off the top because they rarely have rebates and their reputation is very strong.

Interest Rate
For the 95% of us who borrow money and make car payments, interest rate becomes an issue. New cars are less of a risk for the lender, so their bank rates are lower than on a used car. The manufacturer loan divisions make it even more appealing to buy new with 0% financing available on most vehicles at some point after their release.

Loan Term
While the rate is normally lower for new cars, the term is usually longer. A prudent buyer can get the same payments on a used car that they can get on a new car, only for fewer payments. There is also the option of extending the term on a used car purchase to the length of a new car. Vehicles last longer. There are loan companies that will extend a note to 6 or more years on a 3 year old vehicle because they expect it to still be running after that amount of time. In those cases, the payments can be much cheaper than on a new car.