Trying to decide between a new vs. used car? We understand that it’s an important decision. IPAC Pre-Owned Outlet has nearly five decades of experience selling vehicles in northwest San Antonio. We’ll walk you through the top five questions to ask yourself when deciding between buying new or used.
1. What Can I Afford?
Regardless of whether you purchase a new or used car, the first thing you should do is figure out how much car you can actually afford. If you’re financing your vehicle, determine how much you can set aside for your monthly car payment and how much cash you have for a down payment.
Once you know how much you can afford to pay each month, check with the dealership or your preferred lender to see how much you’re approved to borrow and what interest rate the lender is likely to offer you. You can get pre-approved online in just a matter of seconds. Answer a few quick questions and we’ll estimate your buying power without doing a credit inquiry or impacting your credit score.
Once you know your buying power, use a car loan calculator to determine your approximate monthly payment. Simply enter your estimated loan amount, any down payment you plan to make (or trade-in value if planning to trade in a car), preferred loan term, and quoted interest rate—then hit calculate. Toggle the numbers until you find a comfortable monthly payment amount.
You can also do the reverse to determine your buying power based on your preferred payment amount. If you know you don’t want to spend more than X amount each month, you can put in that amount, the estimated down payment amount or value of your trade-in, your preferred loan term, and the quoted interest rate to find your purchasing power.
Once you find a comfortable monthly loan payment amount, you’re ready to decide what type of car you want to buy.
2. What Type of Car Do I Want?
Think about what type of car you want to drive off the lot. If your dream car is out of your price range, consider buying a pre-owned vehicle. You may be able to afford a nicer model than you’d be able to afford if you were to buy brand new.
On the other hand, you may decide you want a car outfitted with all the latest technology. If you’re interested in the newest convenience features on the market, for instance, it may be a good idea for you to lease or purchase a new vehicle instead.
Once you think about what type of car you want and what type of budget you have, you’ll be in a better position to know whether you should be concentrating your search on new or used vehicles.
3. What Warranty Protection Comes With the Vehicle?
A car is a large investment, so you should always make sure your purchase is protected. You should also know what’s covered by that protection and how long it will last.
If you’re buying a pre-owned vehicle, check whether it’s certified pre-owned. A certified pre-owned vehicle comes with certain guarantees, such as a limited warranty (as opposed to typical used cars, which usually don’t have any warranty). In some cases, it may also come with a CARFAX vehicle history report. When buying a used vehicle, be sure to get as much information as you can about the car’s condition and history and any warranties that are included.
You may think there’s less risk in buying a new vehicle, but that’s not necessarily the case. A new car’s value depreciates rapidly. That means you run the risk of owing more on the car than it’s actually worth. That’s why some people opt to buy gap insurance.
Factor in these additional costs—gap insurance or average annual maintenance costs if your vehicle comes with a limited warranty—when deciding whether to buy a new vs. used car.
4. What Is the Vehicle’s Safety Rating?
When trying to decide what car to buy, it’s important to evaluate the car’s safety rating. While new cars may have the latest safety features, you should look up the vehicle’s safety rating as determined by the National Highway Traffic Safety Administration (NHTSA).
If you’re trying to decide between a new or used vehicle, or simply want to compare models of the same make, you can use NHTSA’s vehicle comparison tool to view the safety rating for each vehicle. To do so, you’ll just need the year, make, and model.
Once you input this information, you’ll see a breakdown of the vehicle’s overall safety rating, as well as its rating according to crash type (frontal crash, side crash, and rollover). You’ll also be able to see whether the vehicle is equipped with recommended safety technologies and how many safety issues (such as recalls, investigations, or complaints) the vehicle has had in the past.
Reviewing this safety information will help you make a more informed decision.
5. How Long Do I Plan to Use the Vehicle?
You may be looking to use a vehicle only for the short term. For instance, you may be planning to expand your family in the coming years and will eventually need a larger vehicle to suit your needs. Or perhaps, you want a long-lasting vehicle that will stand the rest of time. How long you’re planning to use your vehicle and for what purpose should also factor into your car-buying decision.
Estimates put the average age of cars on the road today at 12 years. Of course, how long a car lasts will vary based on its use, upkeep, and a number of other factors. Be sure to take into account the car’s age, mileage, and how long you intend to use it when making your decision.Have you asked yourself these questions, done your homework, and feel confident that buying a pre-owned vehicle is the smart move for you? Stop by the IPAC Pre-Owned Outlet. We have an extensive inventory of pre-owned vehicles and will help you find just what you need. We’re confident we’ll have you driving off our lot and hitting the road in no time at all!
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