BUYING NEW VS USED

March 30th, 2022 by

At Rhinelander Buick GMC, we carry a large inventory of both new and preowned vehicles. We’ll be happy to take you on a test drive of any one of them. But before you choose a purchase, it’s best to know the pros and cons of buying new vs used.

Buying New
A new car is not going to saddle you with any problems. You can just drive it off and enjoy many years of pleasure, assuming you keep it well maintained. You are not going to have to worry about condition or mileage. On the rare chance that a manufacturing defect exists, you can get it fixed for free because the vehicle will be under warranty.

You’ll enjoy the latest automotive technology that may not appear yet in any used cars and you get more financing options because manufacturers like to offer incentives, such as rebates and lower interest rates to get you to buy.

You also won’t have to worry about a new car breaking down because the components have not yet been worn down by any driving. Many new cars offer free maintenance, which saves you money. Both Buick and GMC cover your first service visit, which includes a Multi-Point Vehicle Inspection, oil change, and tire rotation, among other services.

The big disadvantage of buying a used car is its higher price and depreciation. When you drive a new car off our lot, it loses value by as much as 20 percent. After the first year, it depreciates by an additional 10 percent for a total depreciation of up to 30 percent.

If you do not account for this depreciation in your financing, your car loan can dive underwater. Your negative equity means that the money that you owe will suddenly be greater than the value of the vehicle. You’ll find it nearly impossible to sell the vehicle because any proceeds that you receive will not be able to cover the loan.

Buying Used
Price is the biggest benefit of buying a used vehicle. You may be able to afford a higher level model, a better trim, or more accessories than you thought possible with a new purchase. The previous owner will have already taken the hit for depreciation. The older your model, the lower you will have to pay for financing. The lower price also translates to lower registration fees, lesser sales tax, and cheaper insurance.

The disadvantages begin with condition. Because the used car has already been driven for thousands of miles, its components are worn, and you really don’t know if they might break down on the road at any time. Depending on how old your vehicle is, you may not have any warranty to fall back on.

You have to take whatever options and accessories that exist on the used vehicle. You cannot just make changes or add components unless you go to a third party, especially with older vehicles whose parts are no longer manufactured. You won’t have the latest high-tech and safety features because they may not trickle down to the used car market for several years. Financing will be more expensive because lenders like to charge more for used vehicles given the greater degree of risk.

One way you can gain peace of mind when used a new vehicle is to confine your choices to those that are Certified Pre-owned. At our dealership, that designation gets you a bumper-to-bumper per limited warranty for 12 months or 12,000 miles, six years or 100,000 miles of powertrain limited warranty that includes roadside assistance and courtesy transportation, two scheduled maintenance visits, a three-day or 150-mile vehicle exchange policy, trial runs of subscription services, and a detailed 172 point inspection.

What to Do Now
If you have any questions on buying a new or used vehicle, give us a call at Rhinelander Buick GMC, and will be happy to help with some answers. In the meantime, you can fill out our pre-qualification form to get approved for a loan before you come down. We can then set up your financing options before you shop. You’ll know how much of a vehicle you can afford and can browse choices that are in your price range.

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