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A brand new automobile is a beautiful thing. It’s perfect inside and out – no dings, no spots where the paint was scratched by the garage door, it even smells new. Should you indulge yourself and spend your money on a car brand new at your local car dealership, or is a pre-owned car a smarter bargain? There are pros and cons to each choice.

Used cars carry much nicer price tags. In fact, a brand new car loses a high percentage of its value the minute it’s driven off the car dealer’s lot. A week after you’ve bought a new car, it’s still new. I doesn’t have any scratches, it still smells new, and it has a lot of miles left. But if you were to try to sell it, it’s no longer a brand new car, and that difference translates into dollars. You might suppose that the value of a car would fall slowly over its useful life, but that’s not how it works. It loses significantly more value during its first months and years. Eventually, the price stabilizes and its value is determined solely by its condition – but it still has some value.

One of the biggest disadvantages to buying a pre-owned car is the unknown. Why did its former owner get rid of it? Is it a lemon? How well was it cared for? Was the suggested maintenance done in a timely manner? Has it had flood damage or been involved in an accident? Fortunately it’s much easier to determine the answer to these questions that it ever has been. A Carfax report tells you the car’s history, and many dealers offer them at their expense. Has it been involved in any accidents? How many owners has it had? Cars can be traced by their vehicle id numbers and now that computer records have improved, it’s much easier to compile this information.

Another disadvantage is that a used car will most likely not last as long as a new car. It will need maintenance and repair sooner. This, of course, depends a great deal on the age of the used car. Some used cars are still new enough to be covered by the manufacturer’s warranty. In fact, many car dealers sell ‘certified used cars’. This means that they have inspected the car, done any necessary maintenance and repairs, and determined that it meets certain quality standards. You won’t have to worry about major repairs for a while if you buy a car that comes with a warranty. Whether or not there’s a warranty, you should have your own mechanic evaluate a car before you buy it. Compare the price tag to the condition. A lower price is the reward for accepting a car with some problems. There’s a limit, of course. A car that’s about to expire isn’t worth any money at all – except to the junkyard.

You already know the bad news about brand new cars – they cost a lot. There are some benefits too. First, engineering is improving, so a car manfactured today will last longer than a car built even a few years ago. And you may not be able to find a used car in the model you like if it has just been released. Infiniti has recently released its G37 Convertible. The few used cars that might be out there will certainly sell at a premium price for a used car. Buying it new may be a better option.

Ultimately, choosing a new or a used car is an individual decision. The type of car you’re looking for and your purpose in buying it will probably determine which way you go. Whichever route you choose, do your homework and consider both options before you make your choice.

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