How to Price Compare New vs. Used!

Cars, cars, and more cars. Alright we all love the thrill of buying a new car, but the process, yeah not so much. So, in order to help ease your pain of the dreaded car dealer we have a few tips and tricks for you when comparing the cost of new and used cars.

Things to Keep In Mind…

There are many tradeoffs to consider when buying a new car or a used one. So first, you want to pick a model and make a chart side by side of the car new and then the car used and all the expense you think you will have within five years of owning the car such as the cost of gas, insurance, repairs, ect.

Now there is a lot of research that goes into finding these numbers that you are going to compare in your chart but for example purposes you can tell that your cost of finance and insurance may be a bit higher and with a used car you will probably spend a bit more on things like gas and maintenance and repairs. However, the obvious difference will be the initial cost of the cars.

When you are wondering why the used car is so much cheaper then the new one there are a few factors to consider like the new car will come with a warranty, which is fixated in the price, but the biggest factor in this is the depreciation. As a car gets old it depreciates even if you have kept it in good condition. Sure a car is always going to depreciate but a new car depreciates a lot quicker starting from the moment you drive it off the lot.

As you can see there are a lot of factors that go into buying cars and comparing their costs. So, in order to get fully prepared before heading to the dealer be sure to check out the video above and follow some of the examples given.