Which is Better? New or Used?
Some people buy used cars all of their lives (no matter their financial situation) while others are determined to buy new. Consider the pros and cons from our financial coaches at GreenPath:
- Obtain exactly what you want: the year, make, model, color, and other features
- Less concern with mechanical problems
- Usually more expensive
- May require a larger loan or longer financing terms
- Increased insurance costs
- Usually less expensive
- Less initial depreciation in value
- May not require financing or as long of a term
- Typically lower insurance costs
- Increased risk of mechanical problems
- Selection may be more limited
Once you’ve decided on whether to buy new or used, stop into ECCU. We can help you research your choices and compare the price, financing options, insurance quotes, safety features, fuel efficiency, and more. We can also help you to get pre-approved for the financing – for more bargaining power.
If you decide on buying used through a private seller, be prepared to ask questions. Lots of questions.
- What is the VIN?
- How long has the seller owned the vehicle?
- How many owners has the vehicle had?
- What is the mileage?
- Has the odometer been rolled back?
- Does the seller have maintenance records?
- What repairs has the car had?
- Has the vehicle been in an accident?
- Look closely at the body. Is there rust on the car?
- Are there any major problems with the car? Minor?
- Does the heater blow warm air and air conditioner cool?
- Are there any problems with the transmission?
Check for Recalls BEFORE You Buy
If you’re considering buying a used car, it pays to do your homework. Visit this site to see if the vehicle has a recall or safety issues.
You can look up if a car has any recalls that require your attention. Like anything, it pays to be prepared.
Now, Do I Buy or Lease?
Some members consider leasing to be a better option, believing they get a little more car for their money. You can have a new car for a set period, but you don’t own the vehicle. When your lease is done, you have the option to buy the vehicle or turn it in.
Consider the pros and cons from our financial coaches at GreenPath:
Buying a Car
- You can keep the car for as long as you want
- You are not limited on the amount of miles you can drive
- You pay for the vehicle until you own it
- You may need a sizable down payment
Leasing a Car
- You might be able to drive a more expensive car than you could normally afford
- You won’t need a large down payment
- Could be a costly option if you exceed the mileage limits or do not adequately maintain the car
As an ECCU member, you can stop in and review your financing options before you go car shopping or call us at 269.375.6702. You can also take advantage of the free financial coaches at GreenPath Financial Wellness for more car buying and budgeting tips.
Source: GreenPath Financial Wellness
Chat with our financial coaches and learn about buying a car and the best deals in financing.
This site offers a plethora consumer information on new car buying.