Is it Better to Buy a New or Used Car?

March 22nd, 2022 by
2020 Toyota 4Runner in Driveway

A common question we hear from shoppers at North Hollywood Toyota is, “Is it better to buy a new car or used car?” There really is not a one-size-fits-all answer to this question. Both options have their pros and cons, and one may be a better fit for your driving needs and budget. It really comes down to individual preference. Below, we’ll compare the perks of a new vs. used car to help you narrow down your search.

New vs. Used Cars

The Perks of Buying New

  • The Latest Technology: When you opt for a new vs. used car, buying new ensures that you always have the most up-to-date technology.
  • Full Warranty Coverage: Most new vehicles provide peace of mind for Van Nuys drivers thanks to bumper-to-bumper and powertrain warranties. While these warranties are in effect, you do not have to worry about out-of-pocket expenses for covered components.

Disadvantages of Buying New

  • Price: The biggest downside to buying new is price. While you’ll be able to enjoy the latest and greatest automotive technology, it comes at a cost.

The Perks of Buying Used

  • More Cost-Effective: Deciding between a new vs. used Toyota? Buying used saves you money right away and in the long run. You’ll save at the time of purchase, when securing auto insurance, and when paying taxes.
  • Slower Depreciation: Used cars depreciate at a much slower rate than new cars.
  • Lower Chance of Negative Equity: What is negative equity? This happens when the car is worth less than what is still owed on the loan. When you finance a used car, you’re likely to have a smaller car loan. This decreases the chance of ending up “upside down” on the loan.

Disadvantages of Buying Used

  • Higher Financing Rates: Is it better to buy a new car or used car when it comes time to finance the vehicle? Lenders tend to charge higher interest rates on used car loans. However, used cars are also more affordable, so the loan term will be shorter.

Compare a New vs. Used Toyota at North Hollywood Toyota

At North Hollywood Toyota, we make it easy to compare a new vs. used Toyota in person. Get behind the wheel for a test drive, and do not hesitate to ask our knowledgeable team any questions you may have. Before you visit our showroom, you can begin your car shopping journey from the comfort of your Sun Valley home. Calculate your monthly payments, see how much your current car is worth when you value your trade, and get pre-approved for financing prior to visiting our showroom. We want to help save you time at the dealership

Begin Your Car Shopping Journey at North Hollywood Toyota

Still debating whether you prefer a new vs. used car? Don’t worry! The team at North Hollywood Toyota can help you narrow down your search. Contact us today for more information, or stop by in person during our regular business hours. We’re just a short drive from Mission Hills.


More from North Hollywood Toyota

  • 2022 Toyota Tundra Towing Capacity

      If you’re in the market for a new truck with the hauling power to impress your fellow Mission Hills truck enthusiasts, then you’re looking for a 2022 Toyota Tundra. What is the towing capacity of a Toyota Tundra? Keep reading to learn more about the impressive Toyota Tundra towing capacity, as well as a quick…

  • 2022 Toyota RAV4 Interior

      The Toyota RAV4 is a fan favorite year after year, and one of the many reasons is the well-equipped and comfortable Toyota RAV4 interior. The Toyota RAV4 interior dimensions are generous, and even the base model is packed to the brim with all of the latest comfort and convenience features. Ready to see how…

  • 2022 Toyota Camry MPG Ratings

    The Toyota Camry impresses Van Nuys drivers and industry experts alike year after year for a vast array of reasons. One of which is the Toyota Camry mpg ratings. The Camry has built a reputation for longevity, dependability, and efficiency, and this model year is no exception. Explore the Toyota Camry mpg ratings more in-depth below,…

Posted in Car Buying