Deciding what type of car or truck to buy is just as difficult as deciding if you’re better off with a new or used car. No one answer fits all, but there are some advantages and disadvantages to owning a used or new car.

The smell of a new car or truck is appealing and cannot be described with words unless you experience it.

That special new smell will cost you. A used car might come with a lower upfront cost, but are you ready for the maintenance problems that are bound to emerge.

If you like reliability and hate having to worry about breakdowns of mechanical things, you should buy yourself a new automobile for the peace of mind.

If you’re mechanically inclined or disciplined enough to maintain a car, a used vehicle will allow you to keep more of your money.

When it comes to new automobiles, the quality distance that used to exist between American and foreign models is no more. American cars are just as reliable as foreign models, but the used car market is still biased towards some foreign car models.

While getting a new car or truck is pretty standard, used cars come in many different purchasing metrics. You can buy a used car from a private seller, or you can buy one of those certified used cars sold by dealers.

These cars are about 2 to 4 years old; some will be fully warranted by the manufacturer.

While it’s getting easier to figure out new car cost, used cars are a breed by themselves. You simply have no idea what the dealer paid for the used car, your purchase might be the slam dunk deal that helps the salesman pays his monthly rent on time.

Negotiating used car prices is an art by itself, and your perceived good deal might just be an illusion as you have no idea of the dealer cost for the vehicle.

The question if you should buy a new or used car is loaded with many moving parts, and all have advantages and disadvantages.

New Vehicle Advantages

New Car Smell. Getting to drive a new car is an aphrodisiac in itself. The new car smell is captivating, and can never be re-captured once it wears off.

It is a huge advantage because it creates happiness principles in your brain which then makes you feel better about your purchase.

Better Financing Terms. Financing a new automobile can be a straight forward process. The financial institution will not be looking for the used car value to help determine your automobile interest rate.

Almost all the major manufacturers have new cars with financing incentives one can utilize.

Even if you’re looking to buy with cash, your new car cost will be lowered with the available rebates.

Full Factory Warranty. Not only does a new vehicle smell good, but it performs better mechanically.

Wear and tear is a car’s nightmare, but you have at least two or more years of trouble-free driving pleasure. Any potential defects can be fixed by the dealer free of charge.

Buying a New Car Disadvantages

Depreciates Faster. Any shiny new car will lose at least 20 to 25% of its value within the first two months.

In fact once you drive off the new car showroom, it instantly becomes a used car, and cannot be returned for a full refund.

Are you comfortable financing a depreciating asset? That’s your decision to make!

Stricter Financing Terms. Since you’ll most likely be financing your new car purchase, there are rules from the financial institution one must adhere to.

You must maintain full coverage insurance as long as your loan is not paid in full. How will you feel having full coverage insurance on a car that you feel is not worth much?

A new car in three or four years becomes very used in all the definitions of the word.

Repairs after Warranty. You know what they say; the patient is well when the doctor is around. For some reason new cars develop very little problems while the warranty is still in effect.

How would you feel paying for expensive repairs plus your car loan? Ouch it hurts! Major parts of your new car will wear down over time and repairing them can be costly.

I once fixed the air-conditioning system in my BMW X5 and it cost me over $2000 at the dealership.

Buying a Used Automobile Advantages

Lower Ownership Cost. If you know how to negotiate used car prices, you just might get a good brand for less.

You can experience driving the same car or truck that cost $50,000 new for less than $20,000 used.

From my point of view and experience, the trip to your destination would be the same only at a lesser cost.

Wider- Choices. Your option of used cars is only limited by your imagination and available funds. A car you cannot afford brand new can certainly be within your means in the used version.

Wide-Fluctuation in Prices. The prices for used cars are not set in stone. Any potential deal will be based on your haggling ability.

If you hate to bargain hard for lower prices, then you better stick to new cars with some identifiable car cost metrics.

A 2003 Honda Accord might sell for $5000 in New York City, while the same car might sell for $6500 in Miami, Florida. A used car offers you a way to pay for one that’s within your available funds.

Some Cons When it comes to used Cars

You Get What You Pay For. Praying for a good used car with very little money defies logic. Your $2000 will buy you a used vehicle that’s probably worth that price.

Repairs Can Be Hellish. That used car used to have previous owners, and you have no idea how they drove.

With parts that have worn out, you’ll most likely be changing major systems in due time.

Unless you’re mechanically inclined, every noise you hear while driving your used car could be a potential problem that might take you to the mechanic’s shop.

If you want to know what type of used cars not to buy, visit several mechanics and see what brands you see needing repairs.

Financing Terms is a Rip-off. If you’re lucky to qualify for financing on a used car, the rate of interest would be much higher as compared to getting a new vehicle.

If you consider all the added cost, you might be better off financing a new car. At least with a new car you would have one or two years of problem free driving.

Warranty Terms. Most used car warranties are limited in what’s covered and the length of time.

Unless you’re good at reading fine prints, what’s covered in your used car warranty might not be helpful for most of the problems that’ll develop with your used car ownership

Some Words of Wisdom

Here are some facts for those trying to determine if to buy used car from a dealer or privately. You’ll pay less through private sellers, but a dealer would offer you some type of warranty with your purchase. (For more useful tips see our full article – So You Want to Buy a Used Car)

For those determined to experience the new car smell, see our article (How to Negotiate Car Price).

Should you buy a new or used car will be determined by your financial acumen and ability. I would advise you to only buy a used car with cash and not finance it.

It makes more sense to finance a new car for several reasons, you can find in that referenced new car purchasing tactics article.

A new vehicle will cost more, but deliver better ownership experience for a few years before the needed major parts needs changing.

A used automobile would cost you less initially, but the parts that need changing would multiply over time.

So new versus used car involves deciding whom you’re going to pay, for the privilege of owning and driving an automobile.

You can either pay the financial institution monthly for that privilege, or you can take your chances with your local mechanic on that used car you think will be problem free.

Both new and used cars have monthly cost, and the sooner you realize that, the higher the chances of you making an excellent decision.