Its common knowledge that you pay a lot more for a new car, and that you lose money a lot faster than if you buy a used car. There are advantages for both new and used cars, but normally just from a cost standpoint, the used car at Indiana dealerships is a better deal.
The advantage of a new car is that it should be in outstanding condition, and it will be fully covered under the warranty if there should be a problem of some kind. There is also the feel of a new car, which is very special too, but that is a subjective value that is hard to measure. Another advantage of a new car is that you get to know it very well, and that can help you with maintenance down the road. Interest rates are also lower on a new car loan, but not enough lower to make a significant difference in your total cost.
The big downside to a new car is that it depreciates in value very fast. You will lose thousands of dollars of value the moment you drive it off the lot. But if you plan on keeping the vehicle for 10-15 years, or until it totally wears out, that is not as big of a deal. Cars lose about 50 percent of their value in three years, but only 25 percent the three or four years after that.
A car that is two or three years old is usually the best deal. It does not depreciate as quickly anymore, and may still have some warranty left. You will still have a lot of miles to drive before you will need major repairs in most cases, and your insurance will be lower than it would be with a new car.
As cars age, maintenance and repair costs add up. There will be brake replacements, and eventually, things like water pumps or fuel pump to replace. Cars are more reliable than ever, and they seem to be lasting longer. That means a used car from Indiana dealerships could be a good deal in the long run.
The key is to balance between the best deal and avoiding the most risk.
If you get a 10-year-old car, for instance, you are very probably going to need some major repairs done. Cars are more reliable, but repair costs are higher too. So while a 10-year-old car would be fairly cheap, it might not be the best deal over several years.
Another disadvantage of used cars is that you won’t get the latest safety gadgets. But most cars have the basics anyway, so while a blind spot monitor would be nice, it is not essential to your safety as a driver.