There are a number of questions potential car buyers must ask themselves before making a decision about whether to go for a new or used vehicle, according to Bankrate.com automotive expert Tara Baukus Mello.
Baukus Mello gives the example of a hypothetical buyer with $15,000 to spend on a car. In this price range, there are new cars available, but they may not have the luxury features it would be possible to get in a used vehicle with the same price point.
In addition to considering their needs for luxury and comfort, Baukus Mello says potential car buyers need to factor in how long they intend to own the car. If it's a relatively short period of time – just a year or two, say – a used vehicle is probably the way to go. On the other hand, if the vehicle needs to remain in service for five years or more, new cars are less likely to break down, the Bankrate columnist says.
While the addition of car insurance, maintenance and other costs are important to buyers who are determining their price range, they will not swing the decision between new and used on their own. Repair bills will, however, tend to be more expensive for used cars, and Baukus Mello warns any vehicle with more than 40,000 miles will likely require at least one major fix.
Insurance costs can vary widely between different makes and models, experts say, and policy issuers always take a car's likelihood of being involved in an accident or getting stolen into account when setting a payment rate for coverage.