Pros and Cons of Buying a Used Car

Pros and Cons of Buying a Used Car

Aside from housing costs, buying a new or used car is one of the biggest purchases you’ll make in your lifetime. If you’re in the market for a new car, but don’t want a large loan or higher monthly payments, you may find yourself considering a used car. On the other hand, if you want more customized features and updated technology, you might be leaning toward a new car.

Here are some helpful insights we at People’s Community Federal Credit Union have created as you weigh your options between buying a new car versus a used car.

Advantages of Buying a Used Car

• Cost savings
• They’ve already taken a huge amount of depreciation
• Faster payoff
• Generally cheaper to insure
• Warranties may be available
• Lower insurance premiums

Disadvantages of Buying a Used Car

• A lot of unknowns
• More wear and tear
• Fewer customization options
• Most don’t come with warranties
• Higher mileage
• Possibility of being stuck with a lemon

When buying a used car, it’s a good idea to have it inspected by a licensed mechanic to ensure the vehicle is in good condition, and that there are no safety concerns.

Benefits of Certified Pre-Owned Used Cars

Certified Pre-Owned (CPO) cars are gently-used, low-mileage cars sold by dealerships after they’ve been thoroughly inspected and reconditioned by licensed mechanics. Buying a CPO is almost like buying a brand new car, but with lower pricing. Below is a list of benefits to buying Certified Pre-Owned Cars.

• More affordable than brand-new cars
• Certified and thoroughly inspected by trained mechanics
• Most come with manufacturer warranties and benefits such as roadside assistance
• They’ve already taken a huge amount of depreciation
• Free vehicle history reports

With Certified Pre-Owned cars, you can trust they’re in good operating condition.

Deciding whether to buy a used car or a new car is a serious financial decision. Before you buy, carefully look over terms, compare monthly payments, and shop around for auto rates. Also remember, you can always negotiate your payments and terms whether you’re buying used or new.

When you’re ready to finance, consider People’s Community Federal Credit Union. We offer a variety of loan types and 100% financing for qualified members. Best of all, our loan rates are the same for all members of PCFCU!