Car Buying: New vs. Preowned Buying a vehicle is both a stressful and exciting experience, and there are advantages and disadvantages to consider when deciding on the purchase of a preowned car or choosing to buy it brand new. While it would be logical to buy a brand new car, there are times that choosing a used car is the best choice. The decision that is best for one person is not always the best choice for the next person, and knowing the pros and cons of each option helps the buyer select the right vehicle for them. The difference in price between a new and used car is one important factor to consider when shopping. Buying a used vehicle can save thousands of dollars when money is limited. A car that is two or three years old will be priced significantly lower, which allows for the purchase of a like new vehicle for less. The GMC Acadia for example, with low mileage and in the Certified Preowned program, will have a low total cost of ownership. When money is not a factor, buying a new car allows the buyer to choose the color and options that they want, as well as ensure that they…show more content… Buying a car that is at least two years old ensures the biggest hit has already been taken. Vehicles depreciate the most in the first two years of ownership, which helps the buyer feel more comfortable knowing that the car will not lose value the moment it leaves the dealership. A vehicle purchased new will depreciate as soon as it is driven off the lot however this is not an issue for buyers intending to keep the car. A number of people buy automobiles and drive them for as long as possible, which makes depreciation a non-factor. Owners that decide after one year of ownership to trade in a car can result in negative equity, which causes the buyer to finance the difference between the amount owed and the amount the dealer pays, on top of the cost of the new car being
