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Depreciation and Gap Insurance
You may have heard it said that a new car loses thousands of dollars in value the minute you drive it off the lot. While it is true that a vehicle’s depreciation is sharpest during the first three years of its life, this has changed in recent years. Today’s new cars tend to retain their value better than new cars did in the past. The field of automotive engineering has improved, and mechanical issues do not develop as easily as they did in older cars. However, depreciation is still a significant factor. You’ll also need to purchase gap insurance for a new vehicle in case you are involved in an accident while the car is still new (this is often also necessary for pre-owned vehicles, but not always).Monthly Payments
There are a number of variables that affect your total monthly payment for a car. The amount of money you have available for a down payment, the value of your trade-in (if you have one) and your credit score are obvious heavily-weighing factors, but these will come into play regardless of whether you buy new or used. If you purchase a new vehicle, dealer-to-factory incentives can significantly lower the amount needed for a down payment. You can also apply cash back to the principal of the loan, which will lower your payments a bit more. Finally, with new vehicles, you can typically get auto loans with longer payback periods (up to 72 months) whereas with a pre-owned car, you may only be able to get 48- or 60-month financing. The net result: new vehicles are often just as affordable as pre-owned vehicles, and sometimes the monthly payment even works out to be less.Vehicle Condition & Price
One reason why some people prefer new vehicles over pre-owned vehicles: they may be concerned about the car’s history (or whether or not the prior owners took good care of the car). While this is a legitimate concern in many cases, buyers don’t have nearly as much risk as before. The stereotype of the used car salesman has become largely a thing of the past—partly because vehicle history is much more transparent than before. When dealerships take cars on trade-in, they are able to assess the market value of the car based on a more complete set of information. This transparency has led to a more level playing field. It’s difficult for dealers to make excessive markups on pre-owned cars—and it’s easier for you to see the full picture of what you’re buying before you buy it.There’s no black and white answer as to whether it makes more sense to buy a new car or a pre-owned car, but you can find an excellent selection of both at Folger Subaru. Our sales consultants will help you to find the vehicle that meets your needs with no hassles or high-pressure sales tactics.
Stop in for a test drive today.
5701 E. Independence Blvd Charlotte, NC 28212
Sales: (888) 703-8351
Service:(866) 306-3293
Fax: (704) 535-8204
