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.

 

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