 TITLE: Should I Buy a New Car or a Used Car? CONTENT: Benefits of Buying a New Car\n----------------------------\nBuying new instead of used isn't for everyone. If you have the budget, however, there are several pros to keep in mind:\n*   **Better reliability:** Newer cars tend to be more reliable than older cars because they don't have a lot of miles on the odometer and no wear and tear on the engine or other key parts. While it's possible that you'll buy a car that has factory defects, most new cars come with a manufacturer's warranty that will cover certain repairs if you run into issues.  \n*   **Lower interest rates:** The average interest rate on a new car loan was 4.12% in the first quarter of 2021, according to Experian's State of the Automotive Finance Market. In contrast, the average rate on a used car loan was 8.7%. Manufacturers often offer financing deals on new vehicles as a way to incentivize purchases—some go as low as 0% APR for buyers with excellent credit.\n*   **Better driving experience:** When you buy a new car, you'll typically get the most up-to-date technology and innovation for an improved driving experience—not to mention that new car smell.\nBenefits of Buying a Used Car\n-----------------------------\nAlthough there are some clear advantages to buying new, there are also some solid reasons to consider buying a used car instead:\n*   **Lower cost:** Vehicles rapidly depreciate once they're sold, which means used cars are generally less expensive to purchase. That lower sales price also typically translates to lower insurance rates. And since the vehicle's previous owner was the one to bear the massive 20% depreciation new cars typically experience during the first year they're on the road, you won't have to worry as much about becoming upside down on your auto loan as your vehicle loses value. If your budget is tight or you simply don't want to spend much money on your next vehicle, a used one may be the ticket.  \n*   **High-quality options are available:** New cars are generally more reliable than used ones, especially with a warranty backing them, but that doesn't mean you can't find a solid used car. Many dealerships offer certified pre-owned vehicles, which means they've been thoroughly inspected and refurbished to meet stringent standards of quality and reliability. Some automakers even offer a warranty on these cars. If you shop around enough, it's easy to find a used car that isn't a clunker.\n*   **Faster payoff:** If you need an auto loan to help you buy your car, you could opt for a shorter repayment term and still save money on a monthly basis compared with a new car. And if you decide to get a longer repayment term to lower the monthly payment, the sting of interest costs won't be as painful. END