With interest rates still low, it’s an opportune time to buy a new car. If you’re in the market, you may be wondering about the benefits of buying a new car vs. a used vehicle. First and foremost, the primary benefit of a new car is exactly that. It’s new and has never been used. This means that everything should be in tip-top shape. You won’t be facing any issues due to lack of vehicle maintenance or wear and tear. Now there’s an even more cost-effective way to buy a new car. Guthrie Community Credit Union’s Advantage Plus Auto Loan Program can provide up to 40% lower payments than conventional auto loans. Read on for even more benefits of buying a new car vs. a used one.
Lower interest rates on new cars
New cars are actually cheaper to finance. Most lenders feel there is less risk in approving a new auto loan as opposed to a used auto loan. Why? It’s easier to put a value on a new car than a used vehicle where the history may be unclear. A buyer may also face mechanical issues or other issues with a used vehicle. This might impact the length of time it’s kept.
Automaker incentives when buying a new car
More benefits of buying a new car are the incentives and rebates that may come with it. Vehicle incentives and rebates are offered by many major automakers to encourage consumers to purchase specific vehicles. They can save car-buyers hundreds or even thousands on a new car. This might include a cashback bonus or special dealer incentives. A customer cash rebate will come from the manufacturer directly to the buyer. This can reduce the price of the new vehicle right at the point of sale. You don’t find these incentives on used vehicles.
Customize to your needs when buying a new car
You have more choice with a new vehicle. You are able to customize it to your needs and wants. With a used vehicle, you are stuck with the features it has. It’s much easier to get the exact combination of features you want when purchasing a new car. This might include both exterior and interior color selection, type of seat fabric, sunroof, an upgraded sound system, electronic stability control, and more.
New cars have the latest features and technology
In this world of rapidly changing technology, new features in comfort, safety, and drivability are continuously introduced. If you like having a vehicle with all of the bells and whistles, then a new car can get you just that. Whether you’re looking for the latest technology in cruise control, safety, or connectivity, you can find it all in a new vehicle. Think lane departure warnings, adaptive cruise control, and even automatic braking. This goes for fuel efficiency as well. Carmakers are continuously introducing newer and better models. As technology evolves, so does fuel efficiency. A car with better gas mileage can help keep more cash in your pocket each week.
A warranty you can count on
Who doesn’t love the full coverage protection of a new vehicle warranty? It can save you a bundle if something goes wrong. A car warranty is a contract that says your car’s manufacturer will pay for certain repairs. The typical auto warranty coverage is 3 years or 36,000 miles, whichever comes first. A new vehicle may have several warranties. This might include a comprehensive or bumper-to-bumper warranty, a powertrain warranty, and other coverage. While most used cars don’t come with a warranty, there are certified pre-owned vehicles that may offer some type of warranty protection.
New car financing
As we mentioned above, the interest rates on new car loans are typically better than used car loans based on a buyer’s credit history. Tap to view the competitive auto loan rates at Guthrie Community Credit Union. Guthrie can help get you on the road to savings with auto loan pre-approval or auto loan financing. Guthrie’s Advantage Plus Auto Loan Program is designed to get you behind the wheel of a vehicle with a loan you can afford. It applies to both new and used vehicles up to 5 model years old. Have a trade-in that applies to your new car purchase? Read our blog “How to Get the Most Money for Your Car Trade-In.”