Are Used Cars Actually More Expensive After Maintenance Costs?
You’re pricing used cars in Shakopee, MN. You’re looking at new models too. Are you throwing away cash on an older car that might need extra maintenance? How well do new wheels hold their value? Let’s look at the pros and cons.
Plenty of New Car Pros
Just walking around a showroom makes the car buying experience special. There’s nothing like slipping behind the wheel of a brand new car. Most of the latest models weigh in with these pros:
- High-tech safety, performance, and comfort features
- Easy financing with incentives like cash rebates
- Lower interest rates on new car loans
- Warranty coverage for an average three years
One Significant New Car Con
Depreciation takes a slow but steady toll on new wheels. As a buyer, you understand that, but think about the numbers. On average, most new cars lose 20% of their value as soon as they’re sold. Three years later, most are only valued at half their original cost.
Money-Saving Used Car Pros
Used cars don’t sell for new car prices. That obvious advantage can be a big factor in your car buying decision. You also enjoy these pros when you purchase an older model.
- Price negotiation options and lower payments
- Minimum depreciation especially on cars older than three years
- Lower insurance rates and simpler policies
Important Used Car Cons
Lower sticker price alone doesn’t always forecast long-term satisfaction with used cars. Consider these older car cons.
- No warranty for maintenance and repairs
- Fewer bells and whistles inside and out
- More difficulty with model price comparisons
- Concerns about past history and performance
Your Final Car Buying Decision
After you factor in maintenance costs, a used car might be more expensive than a new one. Still, your final buying decision should always be based on personal considerations. Weigh the pros and cons. Look for a balance between maximum value and minimum cost that lets you drive home with peace of mind.
Our Expertise at Your Service
Before you decide between used and new, check with the automotive pros at our Shakopee, MN, service center. We can give you tips on average maintenance costs for old models and brand new wheels. It’s just another way we enjoy putting our Kennedy Transmission expertise at your service.