If you're planning to purchase a vehicle, your first decision needs to be whether to buy new or used - regardless if your search is for a car or truck. While there are distinct benefits to both choices, there are also drawbacks.

To help you make your decision, keep reading to learn both the advantages and disadvantages of purchasing either a new or used car.

Price

When it comes to straight-up price, the used car is always going to be cheaper. Vehicles realize the most depreciation during their first three years on the road, meaning a new car owner is going to get hit with that initial hit in value.

On top of depreciation, new car owners also have to pay for import fees, manufacturer's shipping costs, customization costs and taxes. Few, if any, of these costs are ever passed on to the next buyer.

Maintenance and Warranty

For peace of mind, the ball tends to be in the new car owner's court. New cars tend to come with extensive manufacturer's warranties that cover them for anywhere from a year to five years. They also generally have less concern about upcoming repairs or mechanical problems.

However, car manufacturers are beginning to offer "certified used cars." These cars, typically off-lease models, have undergone a thorough inspection and are then certified by the manufacturer under a new warranty. Also, if a used car is sold but has not met the time or mileage deadline for its original warranty, that warranty is extended to the new owner.

Customization

Unfortunately, there aren't a lot of customization or accessory options with used cars. When ordering a new car from the manufacturer, you can choose your interior and exterior color, options and features.

However, for the right price any vehicle can be customized, from changing the exterior color to airbrushing your name across the side, it certainly can be done.

Financing Costs

While used cars are almost always cheaper than brand new models, vehicle manufacturers are fighting back with low to zero percent financing options. By wooing car buyers with no interest financing, new car dealers undercut the used car market.

When you purchase a used vehicle, you can either pay cash or obtain financing from your bank or the dealership. Whether you use a line of credit or auto financing, you'll have to pay interest on that loan.

In conclusion, there are benefits and disadvantages to purchasing both used and new. The distinctions in your choices are basically going to be either about money and savings or the desire for customization and peace of mind under warranty.

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Filed under: Buying Cars

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