New or used: Which should you choose?
If you think you may be among those shopping for a brand new vehicle, first consider some pros and cons:
Pros and Cons of Buying a New Car
Also know that a new car is not excluded if you shop largely on the price.
"Most people think that used cars are cheaper, but this is not always the case," says Ron Montoya, senior consumer council editor at edmunds.com
. “Many used vehicles are priced high due to shortages due to people keeping cars longer in tough times. This makes their prices comparable to new cars. ”
Before considering a new car purchase, keep the following in mind:
- Discounts: Many car manufacturers offer discounts on new cars, so ask your dealer about them.
- Costs and fees:
Check the invoice for extra costs or fees and talk to the dealer if you see things you did not request, e.g. fabric or rust protection. Some dealers charge destination fees to deliver your car to the dealer
- Security Features: They are only valuable if you actually use them.
Our latest survey showed that a surprising number of drivers turn off car technology
which can help keep them safe on the road.
- Protect Your Investment:
What happens if you sum up your car but still owe more on the loan than it is worth? Talk to your local insurance agent about protecting your investment with
New Auto Security clearance * for just a few extra dollars per month.
Is it worth buying a used car?
As the prices of new vehicles continue to rise, shopping with used cars increases. Here are some things to keep in mind if a used vehicle catches your eye.
Advantages and disadvantages of buying a used car
Some additional tips when buying a used vehicle:
- Examine the vehicle's history.
Many dealers offer CarFax ® vehicle history reports to give you peace of mind. "All vehicles have problems," says Montoya. "Finding out what you can handle is key."
- Ask for a guarantee. Some used cars have a factory warranty while others do not. It is better to ask than to assume.
- Watch out for the extended warranty.
Many dealers offer them (but not all buyers need one) while other certified used vehicles have an existing warranty. Depending on the deal, you may save better maintenance costs than sending out money for
an extended warranty.
Compare the Cost of New vs. Used Cars
Let's take a closer look at what affects the cost of buying a new (or new to you) ride.
- The value of the vehicle itself: Resources such as edmunds.com and Kelley Blue Book are very helpful in assessing the value of a vehicle.
- Maintenance, parts and repair:
Do not forget to think about maintenance and repair costs if you are buying a used and looking at a luxury or foreign vehicle as opposed to a domestic one. Parts can be more expensive if they have to be transported abroad and labor costs can also be higher (not to mention that you may have to start refilling premium gas).
- Taxes and registration fees:
Whether you are buying or leasing, make sure you are prepared to pay taxes and registration fees, which can amount to thousands of dollars depending on the final cost of your vehicle. And always get the facts. Do not forget to do
your research on a reasonable price for the vehicle you are also interested in.
- Car Insurance Price: Ever wondered
which is cheaper – insure new or old cars?
Do not forget your help
ERIE agent can give you information about the final price of a vehicle, how to insure it properly and what the difference in insurance will be if you choose from several brands and models. read more about
what determines the price of your car insurance.
Should I buy my car online?
Buying a car online has always been an option through forums such as Craigslist, eBay Motors and Facebook Marketplace. Now more sellers of vehicles such as Carvana and Tesla are also using this platform.
There are some advantages and disadvantages to buying your car online, and it is good to be aware of them before going that route. They include things like:
Buying a car online: Pros and cons
Another thing to keep in mind: When you buy from a local company in your community – as a car dealer – the effect of your purchase remains local by strengthening the local economy and creating jobs. (Americans
Independent Business Alliance calls it the "multiplier effect.") When you buy from a local retailer, you also get a local professional for any follow-up questions that arise about your new trip when you are on the road.
For a deeper look at this topic, read our article on
What to know about buying a car online.
Car insurance to suit your needs
No matter which way you go to buy new ones (or new ones for you), it is important to protect your new purchase.
An ERIE insurance can help you do just that. Get a free quote today or
Find a local ERIE agent near you.
* Vehicles are considered new when they are less than two years old and you are the original owner. Qualified vehicles must have both comprehensive and collision coverage and compensation must be made with a comparable model. The approval
sold per car basis, not per insurance, and contains the specific details of the coverage, conditions and exceptions. New vehicle replacement and better replacement of vehicles do not apply to rented vehicles. Auto only
leasing / loan security applies to a rented vehicle. When payment is made during a new vehicle change or better vehicle change, car rental / loan coverage does not apply. Coverage is not available in all states. Insurance products are
provided that the terms and exceptions are not described here. Coverage does not include items such as late payments and transfer balances from previous leases / loans, etc. Ask your agent for more information.