Is It Better to Buy a New or Used Car?

Used cars on a lot

Are you in the market to purchase a car for your Spokane commute, but you’re not sure whether to buy new or used? The chip shortage and other global supply chain problems have caused a shortage in new cars, bringing the new vs. used car debate to a whole new level. So, is it better to buy a new or used car? We’ll talk about that below in detail. You might be surprised to learn about all of the advantages of buying a used car.

New vs. Used Car – Cost

Is it better to buy a new or used car if you’re on a tight budget? Obviously, a used car is going to have a lower sticker price than a new one. And that price gap has gotten even bigger since new cars are in such short supply, while you can likely find plenty of used cars in stock at any Spokane Valley dealership. But it goes beyond sticker price:

  • Sticker price – Used cars have the obvious advantage here.
  • Monthly payments and financing – Interest rates are a little higher on used cars in general. But because the loan is usually for a smaller amount with used cars, the monthly payments are usually lower and the term of the loan should be shorter.
  • Lower down payment – Because of the lower price, used cars do not require as large a down payment as new cars.
  • No new car fees – There are no destination fees with used cars.
  • Repair costs – This is where new cars can have the advantage, unless you buy a certified pre-owned automobile.

New vs. Used Car – Depreciation

Is it better to buy a new or used car if you plan to keep it for a while? A new car drops in value the moment you drive it off the lot. By the end of the first year, a new car will be worth 20% less than when it was new. By the end of five years, the car will have lost around 60% of its value. But depreciation dramatically slows down after the fifth year. This also means there’s less of a chance to incur negative equity, that is, ending up owing more than what the car is worth, if you buy it used.

Check Out the Quality Used Cars at ClickIt RV Liquidation Center

We have plenty of reliable used cars on stock at our dealership. Why not take one for a test drive? And, if you found this post to be useful, check out our posts on what is considered good mileage on a used car and how to get car loans with bad credit. We’re just down the road from Coeur d'Alene, ID, and we’re here to help. So, drop by or contact us today!

More from ClickIt RV Liquidation Center

  • Five Reasons you Need a Ford Diesel Super Duty in Your Life

    Home of the Best Used Trucks in Spokane The Professional Auto Buyers at ClickIt Auto and RV in Wandermere have done it again. It is hard to find a used Ford truck that hasn’t been heat to heck. Their reputation for being Built Ford Tough is tested daily as the most popular commercial truck on…

  • What’s the GMC Sierra Towing Capacity?

    Are you shopping for a light-duty truck for sale near Spokane? You may be wondering, “How much can the GMC Sierra tow?” Since its 1999 launch, the GMC Sierra has offered impressive towing capacities that have only climbed throughout the years. The newest GMC Sierra 1500 can tow up to 12,200 pounds when properly equipped….

  • How Much Can a Ram 1500 Tow?

    If you’re shopping for a full-size truck, you may be wondering, “How much can a Ram 1500 tow?” The Ram 1500 has a long and rich history of getting the job done for Spokane drivers. New models have a maximum towing capacity of 12,750 pounds, earning the truck a Best-in-Class V8 Engine Towing distinction. Whether…

ClickIt RV Liquidation Center 47.767522, -117.405806.