Important Things to Consider When Purchasing a Vehicle
If you are in the market for a vehicle, there are several factors to consider when making your decision. Should you buy new or used? How important is reliability and safety to you? How much vehicle space do you need? Let’s break down the options:
New vs Used.
You might be wondering if you should buy new or used. Fortunately, there are pros and cons to each option, so it ultimately depends on what your needs and wants are in your next vehicle.
When buying a new vehicle, you can expect to have a factory warranty lasting approximately three years or 36,000 miles. Your new vehicle will have very low miles because you will have the benefit of being its first owner. It will have a clean record and likely will have the newest tech and features for that model. All of these are exciting benefits of purchasing a new vehicle. However, buying a new vehicle typically has a higher price tag, meaning your monthly payment may be higher and you will pay higher taxes when purchasing. Depreciation can also increase your total cost after a few years.
What about buying a used vehicle? Used vehicles typically have lower sales prices than new vehicles, and you can save in other ways too. According to Carvana , the cost of insurance is less for a used car, and you will likely pay less in taxes since the sales price would be lower than buying new. For some used vehicles, you may be able to find ones with time or miles left on the factory warranty, but it is not guaranteed. Used vehicles have more miles on them, but it is possible to find ones that have low miles. You would not be the first owner of the vehicle, so it is important to check the vehicle records to ensure it was well maintained. It may take more time, but if you are willing to buy a used vehicle, you might be able to find one that is like-new with a lower price tag.
Buying new versus used can come down to several factors, but what is most important to you will be how you decide between the two. Our Auto Loan Affordability calculator might help aid your decision.
Reliability, Safety & Space.
A few other aspects to consider in your next vehicle, whether it be new or used, are reliability, safety, and space. If you are commuting to work, it is important to have a vehicle you can rely on to get you to work safely. Many new and used vehicles offer extra safety components to keep you and your passengers safe and secure.
Although winter is nearly over, it is important to make sure to choose a vehicle that can withstand the elements that accompany seasonal change. When winter comes around again, will your vehicle be prepared? If not, perhaps you should consider upgrading to a newer vehicle that offers snow mode or all-wheel drive. These features can help put your mind at ease when driving in the snow that coincides with living in the Midwest.
Space is another reason to buy a car. If your family is growing, maybe you need to transition from a two-door to a four-door or invest in a vehicle with third row seating. Maybe you plan to take family road trips this summer, so upgrading to a larger vehicle can provide you and your family with the leg room, cargo space, and towing capacity you desire.
Purchasing a vehicle is an exciting time and finding the right vehicle for you and your budget can be challenging. Kohler Credit Union’s lending specialists are available to assist you through the vehicle loan process and help you finance the perfect vehicle once you find one that meets all your wants and needs. Visit our vehicle loans page for more information or to apply online. Want to talk to someone? Give us a call at 888.528.2595.
*This article is provided for your convenience and is for informational purposes only.