When making the decision to purchase a new car, cost is the major issue when determining where to buy a car, and what kind of car to buy. The ever present struggle between making the decision to buy a new car or used car is always present, and though buying a new car may seem to come with more benefits, buying a used car is actually the better option for some people. When it comes to buying a used Mazda in New Lenox, many different things could determine why buying a used car is more beneficial than buying a new one.
Types of Costs
When buying a new car, the down payment required and loan period are always going to be more than with a used car. This is simply because new cars are much more money up front. The average cost for a good new car usually starts off around twenty thousand dollars, and for some people, this can be an entire year’s salary. On the other hand, a good and used car may only start off around eight to ten thousand dollars, and this number is much easier to work with when saving money for a down payment.
Interest Rates
Although interest rates for new cars themselves are often lower than interest rates for a used car, because the marked price of the car is significantly less, you won’t have to have to pay off the car as long. This can result in a lower monthly payment versus a new car, as well as a smaller loan period, making it easier and faster for you to pay off your car. Used dealerships also offer a cash versus loan price. If you’ve been able to put away a bit of money, or if your goal is to get a good car you can own quickly, it may be cheaper to pay for the car in full when you go to buy, rather than dealing with banks or having to apply for loans. Applying for loans at multiple places can be disheartening if you aren’t approved right away, and this can also cause complications for you credit score.
Credit Scores
Credit score is a major factor when being eligible for a car loan for a new car. For people who may be rebuilding their credit, or whom may not have any credit at all, buying a used car is a great way to establish credit. Seeing as the low price of a used car in comparison to the new would take less time and money to pay off, your credit score can drastically improve from staying on top of your car loans.
