It’s time to get a new car. You have squeezed out the last shaky mile the old one had to give. Or perhaps you are just ready for something different. Maybe something better for the environment, or bigger, or smaller. Whatever your needs are, it’s that time.
Buying a car is a big decision, and part of your decision will be insurance costs. At Baldwin Woodville, we have insurance packages for any need. So while you are purchasing your new or used car in Minnesota or Wisconsin, contact your BW agent.
To start you on your way to making the best decision for you, we’ve put together some of the pros and cons of purchasing new and used cars to give you some things to consider as you shop for your next vehicle.
New Cars
Pros of buying a new car
- Manufacturer’s Warranty – You could get up to a 5-year, 10,000 mile manufacturer’s warranty.
- Latest Technology – You have the newest safety features, such as advanced air bags, backup cameras, and driver assist.
- Customize – you can choose any color of car you want, any stereo and internet setup, any kind of wheels, and many other options.
Cons of buying a new car
- Instant Depreciation – Your new car immediately loses 10% of its value when you drive it off the lot.
- More Expensive – A new car is more expensive, and so are the sales tax and licensing fees.
- More Expensive Insurance – Your insurance will be higher because of the car’s value and the insurance requirements when you finance a car.
Used Cars
Pros of buying a used car
- Better Value – A car that is only one year old has a much higher value for the price you will pay.
- Manufacturer’s Warranty – If you buy a recent model, you could still get a manufacturer’s warranty.
- Less Expensive – A use car costs less, as does the sales tax and licensing fees.
- Less Expensive Insurance – The state requires lower coverage limits than the financing company.
Cons of buying a used car
- Maintenance History – You might not know if the vehicle has been involved in an accident, flood, or other destructive event.
- Why Traded In – You won’t know if the previous owner traded the vehicle in because there are impending mechanical failures.
- Lack of Warranty – You can purchase warranties for used cars, but not as good as the factory warranty.
Of course this list is not comprehensive, but it covers the main differences in new and used cars. Your Baldwin Woodville agent is available to help you make the decision of purchasing a new or used car in Wisconsin or Minnesota.
If you have chosen a new car, let us help you make your next decision – buy or lease?