The material presented here is for educational purposes only and is not intended to be used as financial, investment or legal advice.
Quiz: Should I Buy a New Car or a Used Car?
There are literally hundreds of options when it comes to buying a car. From dealerships to individuals selling their cars, you have choices when it comes to purchasing your next ride. Usually, the first step in this process is deciding if you are looking for a new car or a used car, but it is not always easy to make the decision. To help you decide which choice is best, take our quiz below and find out which details matter the most to you when it comes to car shopping.
1. Are you okay with your car depreciating in value quickly?
- Yes
- No
2. Do you know what you want in a car?
- Yes
- No
3. Do you need your car soon?
- Yes
- No
4. Are having the newest upgrades important to you?
- Yes
- No
5. Is not worrying about fixing things a big priority for you?
- Yes
- No
Please answer all the questions.
You answered mostly “yes,” which means that you should probably be looking to purchase the newest ride on the road.
Benefits of buying a brand new car:
- Saves You Time: If you know which new car model you are looking for, you don’t have to spend time searching for it as you might with searching for a used car online. You can just check with your local dealerships and visit the one that has your new car waiting for you.
- Can Reflect Your Tastes: When buying a new car, you can usually get the newest technology and pick out the exterior and interior colors.
- Gives You Peace of Mind: Many new cars come with a warranty that can help you feel secure since you know that you are covered if something breaks.
Drawbacks of buying a new car:
- Loses Value Quickly: New cars depreciate faster than older cars. In fact, as soon as the dealership is in your rearview mirror, that new car has already lost about 10 percent of its value.
- Has Higher Insurance Rates: Insurance rates on new cars tend to be higher than on used cars since their replacement parts are often more expensive.
- Could Cost You More: There typically aren’t a lot of options to lower the price of a new car, so while you might be able to save a little cash off of the sticker price, it probably won’t be a lot.
Now that you know if you should be searching for a new or used car, you can start the process as soon as you are ready. Just make sure that whatever car you purchase, it is a good fit for you and that it is something you can see yourself driving for a while.
You answered mostly “no,” which means that you should probably be checking out the used car lots (and maybe the internet) to find your next ride.
Benefits of buying a used car:
- Gives You More Options: Certain cars are not produced anymore, but you can probably find them in the used car market, along with older year versions of new vehicles. This means you have a wider selection of options when purchasing a used car compared to a new car.
- Lets You Get a Bargain: Since you would be purchasing a used car, you usually have more room to negotiate than when you purchase something brand new off the lot.
- Can Purchase From Anyone: While there are used car dealerships, you do not have to make your purchase at one of those locations. Many individuals sell their used cars on their own, so you have more options for who you would like to work with when purchasing an older set of wheels.
Drawbacks of buying a used car:
- May Need Repairs: While it is important to get a used car inspected to make sure it is in good shape, there can still be some bumps in the road after you purchase it. It is best to plan to have some extra funds in case you need to fix something after you purchase the car.
- Might Not Be Your Perfect Match: It can be challenging to find the exact color car you want since a used car cannot be easily customized. This may mean that you end up with a car that doesn’t exactly match your tastes.
- Can Be a Slow Process: There is a lot of work involved in finding the right used car, and this means that it could take you longer to get the perfect companion for your road trips.
Now that you know if you should be searching for a new or used car, you can start the process as soon as you are ready. Just make sure that whatever car you purchase, it is a good fit for you and that it is something you can see yourself driving for a while.
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