Your preferences and needs, as well as financial considerations, will determine whether you buy a new or used car. When deciding which form of purchase is best for you, take into account these factors. Millions of automobile purchasers must decide each year whether to purchase a brand-new vehicle or a used vehicle in order to save money. Price is just one consideration when deciding between that new car fragrance and a used automobile, but it is a crucial one. According to Experian’s State of Automotive Finance Market report for the third quarter of 2022, driving new costs approximately $700 per month while driving used costs approximately $525.
A used car is a smart choice if you’re looking to save money on your initial purchase. However, you must take into account the total cost of ownership, including maintenance and repairs. You might discover that, from a financial standpoint, buying fresh is preferable. There are ways to research your purchase, whether it’s something new or used. New automobiles can be found at a nearby dealership or by doing a search on websites like Edmunds or Autotrader. Dealerships offer used automobiles, but you can also find them — possibly for less money — from independent dealers, individual sellers, or big-box stores like CarMax, Vroom, or Carvana.
Used cars typically cost less than brand-new vehicles. But over the past five years, the price of both has substantially climbed.The average monthly payment for a new car has increased by 18.5%, from $554 in 2019 to $667 in 2022. Also, the average price of used cars increased significantly, from $391 to $515, a difference of 27.4%. You may get an idea of purchase expenses and five-year maintenance expenditures from Kelley Blue Book and Edmunds to better plan for the cost of owning a car, new or secondhand. Here is an Edmunds price comparison between a brand-new and used Honda Accord.