Should You Buy New or Pre-Owned?

Financial experts constantly harp on the benefits of buying a used or pre-owned vehicle. They say that a new car loses 20% of its value the moment you drive it off the lot. So, say the experts, buy a late model used car. Let somebody else, the original owner, pay that 20% that you can save by buying used.

That's one way of looking at it.

But there is another way of looking at it: In America, buying a brand spanking new car is a sign of achievement. No one crows about their new raise allowing them to buy a used car, no matter what kind of condition it's in. Right? And then there's everything about new. No one else has ever driven it! No one else's smells or spills or tastes have spoiled the car that you've fallen in love with. For many, a new car or truck is a dream come true. A car buyer with this much emotion and pride invested in their next vehicle isn't going to care much about the extra financial investment associated with a new car.

Well, this article isn't for those with a vested emotional interest in new. What follows is all about encouraging those who look to the bottom line. But as you will see, getting pre-approved with Montana Car Loans for a pre-owned vehicle doesn't mean driving a beater. It means having your cake and eating it too in a troubled economy!

Late Model, Previously Owned

Here are just some benefits of buying pre-owned vehicles:

• More for your money It isn't rocket science to understand that used cars cost less than new cars. But there is a corollary there: for the same money you can buy more car! Using that rule of thumb - 20% loss of value on leaving the lot - if you have been pre-approved through Montana car loans, you might be able to get 20% more car for the same money. How'd you like custom rims, an aftermarket sunroof, premium sound system, and so on that you wouldn't be able to afford on that new car? Unfortunately, unlike used car loans are at a higher interest rate for a shorter term, so monthlies might be significantly higher. But in the long run, you'll pay less for more.
• Don't buy used, buy pre-owned Never buy a used vehicle that is out of warranty if you can help it. Most manufacturer warranties are transferable to a second owner, and you want a good part of it to be left. Some manufacturers offer as much as 10 years on the drive-train. And many dealerships offer much better assurances than that, including 100-point inspections and the like for "certified" vehicles. You can find a pre-owned vehicle in such good shape that only you will know that it wasn't a brand new car that you've purchased with the help of a Montana car loan.
• Longer useful vehicle life In recent years we've all seen the competing claims of auto warranties. While many manufacturers carried 3-year, thirty-six thousand mile warranties on primary components for decades, the last decade has included a veritable warranty war. With some manufacturers offering 10-year, hundred-thousand mile warranties, the number of under-warranty used vehicles has exploded! While you should still be careful and take a used vehicle in for objective inspection by a mechanic, the risks of buying used are happily reduced if you choose a make and model that is still under a few years of warranty. But make sure of one thing: that the warranty allows it to be transferred to you. Some warranties allow only a second owner transfer. If you are the third, you may be left uncovered. Don't let that happen to you.

Well, whether you are of a mind to buy new after reading all about the benefits of pre-owned cars, or whether you take out advice, we hope you will start with one thing either way: a Montana Car Loans online application!