New or Used? It's Up to You

First, I want to thank everyone who read my first blog post. I received a ton of emails and I am so appreciative of the support. Thank you! I want to continue by weighing in on the new versus used debate surrounding car sales.

I get asked questions about this topic quite frequently: Which is better? Which is a better investment? Which will I like better (‘I’m not a mind reader’—that may be a topic for a future post.)? And, which is better for my teenager?

I’ll present the facts and let you figure out which is best for you. As an aside—we sell both so I have no bias.

New Cars:

• If you are addicted to the new car smell or are really into "keeping up with the Joneses," buy new, no "new car smell" air freshener will satisfy you.
• If you absolutely need a red all-wheel drive sport utility, with a moon roof, the most high tech radio, navigation, backup camera, a certain color of leather and a cup holder in the exact right spot, you are probably better off with new. I’m not saying we don’t have your perfect car on the pre-owned line, but spare yourself the search for the perfect car that does not exist. You may find that car someday, but it will probably be on Ebay, from Texas, and it won’t have a warranty.
• New cars have a full-factory warranty—time, mileage and details vary by manufacturer.
• You will have more control over options, color and purchase time frame with a new car.
• New cars are not a waste of money—all cars depreciate, all cars need maintenance, all cars need repairs, all cars need tires. If you don’t like spending money to maintain your car, get a horse. But I’m pretty sure those are expensive to maintain as well. The only cars that maintain value are collectibles and classics that are well-maintained, garage kept and rarely driven. As a guideline, most mainstream vehicles lose roughly 30 percent of their value in the first two years of ownership.

Used Cars:

• If we do have your perfect car on the used car line, it is probably someone else’s perfect car too and no, it will not be there next month.
• You can purchase an extended warranty for any car and have the same coverage as the factory plus benefits like roadside assistance and a rental car. A purchased warranty almost always pays for itself in the end.
• If you are buying for your teenager—for the love of your insurance—go used! You will regret new in about 6 months when the pretty new car is dirty, scratched, dented and you will most likely have four patched up tires. Side note: teach those little buggers some responsibility by making them maintain the vehicle.
• If you want to save a few bucks, a 1- or 2-year-old model will save you money. Let the first owner pay the depreciation. But again, you will have to sacrifice some control over the details.
• Painting a car the color you want is never an economical choice, but changing your color preference is free and probably won’t put you into therapy. On that note—never let your 16-year-old choose the color of the car because it’s "cool."
• Used cars do cost less, however the rate to finance is slightly higher.
• Used cars are not ridden with service problems—all cars can have service problems if they aren’t properly cared for and sometimes things just break. It happens to the best of cars.
• Used cars are not dirty—of course all dealers detail and service vehicles before offering them for sale.
• Warning: Always check a CARFAX report for major accidents, flood damage and odometer abuse. A little fender bender usually isn’t a big deal, but anything involving the frame of the vehicle could be a problem down the road.

One final point—all cars need to be taken care of, maintained and they will treat you well no matter if you are the first owner or the forth. As long as you are driving a vehicle that makes sense for you and your family, that’s good enough for me. I’d be happy to answer any questions you may have surrounding this subject: kateschoedel@comcast.net.

Editor's Note: Kate is the marketing director at on Route 19.