The decision to buy a new or used car is a tough one, especially if you’re looking to buy the car of your dreams. There are, however, many pros and cons of each to consider when making the decision. Some factors are generally based on buyer preference but there are many that are based on cold hard facts. Below are some pros and cons of each in order from most to least important:

New Vehicle:

Pros

• No previous owners, unreported accidents or pre-existing mechanical issues to worry about:

• Option of choosing exact car features (exterior/interior color, navigation, lane departure detection and etc)

• Factory warranty 

• Low Financing rates as compared to used vehicles

• Low maintenance cost for the first few years of ownership

Cons:

• Higher cost to purchase than used

• High upfront depreciation 

• Higher tax and insurance cost

• Unknown underlying issues for new model release

Used Vehicle:

Pros:

• Cheaper to buy

• Slow depreciation 

• Lower tax and insurance costs

• Reliability information researchable online 

Cons:

• Previous accident and maintenance history not always 100% accurate 

• If you buy a lemon, which is a car that looks fine on the outside, but turns out to have hidden issues, you can run up repair bills quickly.

• Possibility of not finding a car that meets your exact specifications

Based on the above pros and cons, it is easily distinguishable that the decision of buying a new or used car all comes down to $$$.