Is it Better to Buy a New or Used Car?

When the time comes to upgrade your ride, you may find yourself asking, “Is it better to buy a new or used car?” While they both come with good benefits, the best one comes down to which fits perfectly into your St Louis lifestyle. Keep reading as we compare new vs. used cars to help you decide which route makes more sense for you! 

New vs. Used Cars: What are the Differences? 

New Car Advantages

• Newest Technology: Buying or leasing a new car gives you access to the most up-to-date technology from whichever brand you choose. Automotive technology updates frequently and a vehicle that’s even a few years old can be considered technologically outdated. 
• Greater Fuel-Efficiency: Today’s vehicles feature fewer V6 and V8 engines, as they’re being replaced with turbocharged motors that are designed for greater fuel economy.
• Full Warranty Coverage: Most new vehicles come protected by bumper-to-bumper and powertrain warranties that cover most of the car’s components for a certain amount of years and miles. 

New Car Disadvantages

• More Expensive: As expected, the price of new cars is more expensive than used and certified pre-owned vehicles plus new cars come with elevated sales tax. 
• Faster Depreciation: The value of a new car begins to diminish the moment you leave the dealership. In fact, a large portion of a car’s value is lost in the first few years of its lifespan.

Used Car Advantages

• More Cost-Effective: Buying a used car is a good way to save money; you’ll save money when you purchase from the dealer, buy auto insurance, and pay taxes. 
• Slower Depreciation: Used cars have already passed their initial depreciation period, and lose value much more slowly as they continue to age. 
• Less Chance for Negative Equity: Negative equity is when you owe more on your car loan than what the car’s worth. So, if the car is lost or irreparably damaged, you may get stuck paying on the auto loan, even though you can’t drive the car. When you finance a used car, you’re likely to have a smaller car loan, so it’s less likely that you’ll end up “upside down” on the loan.

Used Car Disadvantages

• Higher-Priced Financing: Lenders tend to charge higher interest rates on used-car loans, which leads to higher monthly payments. On the flip side, the price of the vehicle will be lower, so the loan term will also be shorter. 

Why Shop with BMW of West St Louis?

Affordable luxury is what we strive to offer at BMW of West St Louis, you’ll be impressed by our wide selection of new BMW vehicles, as well as other high-quality pre-owned brands. Our friendly client advisors will help find the ideal match for your budget and lifestyle, then have our finance center pair you with your ideal loan or lease option. You can also apply for financing online before you come in if you’d like to speed up the process. 

Start Shopping with BMW of West St Louis Today! 

Now that you’ve compared new vs. used cars, your decision will be clearer by the time you visit our showroom in Manchester. Whether you go for a new or used car, BMW of West St Louis will make sure you drive away in the vehicle that meets all your expectations. We can’t wait to see which model you choose, contact us online or just stop on by!