When it comes to car shopping, it can be hard to decide whether to buy a new or used vehicle. At your Cadillac dealer, the finance experts can help you hammer out a financial plan that works for your budget.
Buying a New or Used Cadillac at Your Cadillac Dealer: Four Things to Consider
1. Overall Price
For many drivers, the most important factor to consider is the overall price of the vehicle. Drivers who want to save money tend to purchase used vehicles since even models that are one or two years old are significantly more affordable than brand-new vehicles from the Cadillac factory. Since Cadillac is a luxury brand, buying a used model can have a profound impact on the total of your monthly payments.
2. Interest Rates
Aside from the overall price of your vehicle, your monthly payments are also calculated using the interest rate on your loan. In general, the interest rate on a new vehicle is much lower than the interest rate on a used vehicle. Depending on your financial situation, you might end up saving money by buying a new car since you will be paying less in interest over the term of your loan.
3. Depreciation
The value of a brand-new car depreciates as soon as you buy it. Depreciation might be a factor to consider if you ever intend to sell or trade in your car in the future. For some drivers, it makes more sense to buy a vehicle that has already depreciated since a used vehicle won’t lose significant value during their ownership.
4. New Features
Drivers who care about having the latest features may want to opt for buying a new car. A new Cadillac will likely have advanced driver assistance features, LED lighting features, comfort features like heated seats, convenience features like rain-sensing windshield wipers, and other technology. Undoubtedly, these new features will improve your driving experience.
However, if you don’t need to have the most recent features, then buying a used Cadillac that’s a few years old is a great option. Many used Cadillac models are only a few years old and will come with some advanced features, particularly driver assistance and smartphone connectivity features.
5. Insurance Costs
A new car will typically have higher insurance costs than a used car. This is directly related to the value of the vehicle. Because a new Cadillac has a higher value, insurance companies will quote a higher premium and deductible for coverage. A used car, on the other hand, has a lower value and is less risky to insure.
Deciding whether to buy a used or new vehicle will depend on your ownership goals and your unique financial situation. To learn about your loan options, get in touch with Service Cadillac today.
Connect with us
Recent Blog Entries
Categories
