Q: Should I buy used or new?
A: The answer to this question will vary according to your personal preferences. However, it does seem to come down to three major factors: price, warranty, and condition.
Consider the price. In almost every case, a new car will cost more than a used one. For instance, a new 2011 Volvo XC70 3.2 AWD with leather seats, moonroof, climate package, metallic paint, and booster seats will have an MSRP of $39,350. A Certified, Pre-Owned 2008 Volvo XC70 3.2 AWD with the same features and 32k miles is currently being sold at Leikin Volvo for $27,990. While new car buyers do not have to pay taxes on the difference between the new car purchase price and trade-in value, the used wagon would still be the better deal. Who wouldn’t want to save more than $11,000 when purchasing his next car? The only problem is that the purchase price isn’t the only factor.
Consider the warranty. If you were to purchase a new Volvo today, you would get something called the Safe+Secure Plan. That gives you 5 years or 60k miles of warranty, free factory scheduled maintenance, Roadside Assistance (unlimited miles), and Wear & Tear coverage (brake rotors, pads, and wiper blades). The savings provided by this plan will save the new car buyer approximately $4,000 over the first 5 years or 60k miles. That’s nothing to sneeze at! However, Volvo’s Certified, Pre-Owned (CPO) program also has it’s advantages. Every CPO vehicle is certified to be in excellent condition by a Certified Volvo mechanic. After going through service, the vehicle is awarded a warranty that covers the car for up to 6 years or 100,000 miles from the date the car was purchased new. Which works better for you?
Consider the condition. When you purchase a new car, it will be in (are you ready for this?) … new condition. There will be no scratches, paint chips, wear marks on the seats, etc. And in most cases, a new vehicle will have less than 50 miles. (Some vehicles may have more due to test drives.) Some customers just feel better about being the only owner of the car. If you are like this, then a new car is probably the only option that you will consider. But if you don’t mind a gently used vehicle, with a clean carfax report, and if you want to save some money, then a used car is going to work well for you. You may have to search a while longer to get the right color, options, and condition that pleases you, but in the long run a used vehicle will work just as well for you.
Should you buy a used or new car? As you can tell, the answer to that question isn’t as concrete as you once thought. It really does vary according to your personal preferences. But whatever you end up choosing, be sure that the vehicle is in good condition, has a good warranty, and fits in your price range. At Leikin Motor Companies we have a large selection of new and pre-owned vehicles. Feel free to contact us at any time.