Once the decision to purchase a particular brand of car is made, the next big step is to decide if a new vehicle is best, or if a used car is the wiser choice. In some cases, the decision is an easy one, due to simple lack of availability, but if the buyer wants a Silverado, for example, there are many Chevy dealers in Lockport from which to choose. It’s at this point, when faced with lots of choice, that the buyer needs to know if he or she wants to go with a used or new vehicle. Here are some things to keep in mind when deciding which type of car is best.
Cost
Obviously, a used car will initially be less expensive than purchasing a new one. However, used cars tend to come with shorter warranty periods and require more work and maintenance than new vehicles. In addition, while many banks do offer financing for used cars, the interest rates on loans for new vehicles tend to be lower, simply because the vehicle is worth more and has not already started to depreciate in value.
Depreciation
Depreciation happens when an asset, such as a car, decreases in value. New cars depreciate the moment they are purchased, sometimes dropping by thousands of dollars, the moment they are driven off the lot. While used cars do continue to depreciate with longer use, studies indicate that cars suffer from the most depreciation during their first three years on off the lot.
Insurance Rates
The amount a buyer will pay for insurance on his or her car will be affected by any number of factors, including driving history and creditworthiness. Another important factor is the age of the car. Used vehicles tend to have lower insurance rates than newer ones. The difference depends on the make and model of the car, but in some cases can be extreme.
Available Features
A buyer can put almost any feature on a new vehicle – the options are almost endless. With most modern cars, they can be highly customized aesthetically as well. For a buyer who is keen on any particular feature, or who wants something different than what other people are driving, buying a new vehicle is the way to go. Buyers who are less picky about features, or who are more concerned about cost, would benefit more from a used vehicle purchase.
For more information about locating purchasing a new or used vehicle from Chevy dealers in Lockport, contact Hawk Chevy Cadillac at URL.
