Is It Better to Buy a New or Used Car?

If you’re in the market to upgrade your vehicle around Bloomington or Champaign, you might wonder, “Is it better to buy a new or used car?” The value of either option depends on what meets your needs and fits with your financial plans, but there are advantages and disadvantages to each. Learn more about new vs. used car shopping to see which suits you best, and then explore our inventory for your next ride at Sam Leman Automotive Group today!

New vs. Used Cars: What Are the Differences? 

New Car Advantages

• Newest Technology: Buying or leasing a new car gets you to access to the latest and greatest technology from whatever 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 Automotive technology updates frequently, and a vehicle that’s even a few years old can be considered technologically outdated.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: In today’s automotive market, achieving impressive fuel-efficiency ratings is a goal for most automakers. 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: New cars are much more expensive to purchase than used and certified pre-owned vehicles, and you can expect to be taxed on the price you pay. What’s more, once the vehicle’s warranty coverage expires, you’ll likely find that your car’s state-of-the-art technology is expensive to repair and maintain. 

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: 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 cars have already taken this initial depreciation hit 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 Sam Leman Automotive Group?

Whether you’re new or used car shopping at Sam Leman Automotive Group, our dealership will work to help you find a trim level that checks all the boxes. Our dedicated finance team can walk you through all of our recent specials along with a range of used and certified models. To get started at home, we offer excellent online resources like our monthly payment calculator to estimate your car lease or finance terms and rates as well as our secure financing application. 

Find Great New and Used Cars for Sale at Sam Leman Automotive Group 

Now that you’ve got a better look at new vs. used car ownership, take the next step to seal the deal on your next ride for Peoria and Champaign roads. Find more ways to save on your next purchase at Sam Leman Automotive Group when you shop our rotating inventory of new car specials. There’s even more information on car financing and leasing as well as details on auto insurance and warranty options. Contact us today for more information on new vs. used car shopping, and schedule a test drive at our dealership in Central IL!