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New vs. Used Car Financing: Making the Right Choice


By: Envista

New vs. Used Car Financing: Making the Right Choice

When it comes to purchasing a vehicle, one of the most critical decisions is whether to buy new or used. This decision not only affects the type of car you'll be driving, but also impacts your financing options and long-term financial commitments. Keep reading to learn the pros and cons of financing a new car versus a used car. We’ll equip you with the knowledge needed to make an informed decision that aligns with your financial goals.

The New Car Advantage

The allure of cutting-edge features, pristine condition, and the unmistakable scent of a brand-new car are desirable parts of the buying experience. Beyond the sensory appeal, the advantages of purchasing a new car extend to reliability, advanced technology, and the potential for lower interest rates. Here are some compelling reasons why investing in a new car can offer an unparalleled automotive journey that aligns with your desire for innovation and peace of mind.

Cutting-Edge Features and Reliability

Purchasing a new car often means gaining access to the latest features, cutting-edge technology, and pristine condition. New cars come with warranties that provide peace of mind, protecting against unexpected repairs and maintenance costs.

Lower Interest Rates and Special Financing Offers

In many cases, new car financing options come with lower interest rates and special financing offers from manufacturers and dealerships. These incentives can translate into lower monthly payments and potentially reduced long-term costs.

Additionally, Envista is currently offering some incredible car loan rates for your next vehicle purchase. To make the deal even sweeter, throughout the months of March and April, customers can take advantage of a $100 gift card when you purchase or refinance a vehicle with us.*

Depreciation Considerations

While the appeal of a shiny new vehicle is hard to look past, it's essential to factor in the depreciation of new vehicles. New cars experience their steepest depreciation in the first few years, meaning that the vehicle's value drops significantly during this time. This rapid depreciation can result in negative equity for the owner, where the car's value is less than the outstanding loan balance.

The Used Car Advantage

The option of purchasing a used car presents advantages that appeal to a wide range of consumers. Not only does buying used offer significant cost savings compared to purchasing new, but it also provides the opportunity to acquire a higher-end model or additional features within the same budget.

Another benefit is used vehicles often experience slower depreciation rates, allowing buyers to potentially retain more of their initial investment over time. The diverse availability of makes, models, and options in the used car market also offers buyers the chance to find a vehicle that perfectly aligns with their specific preferences and needs.

Cost Savings and Reduced Depreciation

Used cars typically offer a more affordable upfront cost compared to their new counterparts. And, since used cars have already undergone significant depreciation, buyers can avoid the steepest decline in value that occurs during the first few years of ownership.

Potential for Lower Insurance Premiums

Used cars often come with lower insurance premiums thanks to their reduced value and potentially lower risk for insurers, providing an additional avenue for cost savings.

Diverse Selection and Established Reputation

Buyers of used cars have the opportunity to choose from a wider range of makes, models, and features. Furthermore, established reliability and performance data for used cars can help buyers make informed decisions based on historical performance and reviews.

Making the Right Choice for Your Next Vehicle Purchase

When deciding between new and used car financing, it's crucial to consider your personal preferences, financial situation, and long-term goals. If having the latest features and warranty coverage is a priority, a new car may be the right choice for you. On the other hand, if cost savings and established reliability are more important, a used car could be the ideal option.

Ultimately, both new and used car financing options have their own set of advantages and considerations. By carefully evaluating your individual needs and conducting thorough research, you can confidently select the best financing option that aligns with your budget and lifestyle.

Whether you decide to finance a new or used car, it's important to secure the best possible financing terms. By leveraging Envista’s current auto rates and incentives, you can find the ride that best fits your personal journey.

Our consumer lending team is ready and available to help walk you through the process and answer any questions you have. Reach out to us today or visit our auto loans page to learn more.