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Should you purchase a used car? [Video]

Posted on Tuesday, December 6, 2016 at 7:55:37 PM

Buying a vehicle can be somewhat stressful, especially given the sheer variety of options available on the market, as well as the increasing access to credit that makes purchases a bit more financially feasible. However, one of the greatest determining factors involved in the hunt is whether the car is new or used, as this distinction will have a major impact on several costs involved in ownership. 

Bankrate explained that insurance and registration tend to be cheaper for used cars than new ones, and consumers can often get more value out of a used car purchase than money spent on a new model. What's more, the source pointed out that depreciation needs to be a part of the conversation, and new cars can depreciate by as much as 30 percent in the first year of use - 20 percent when it leaves the dealership and another 10 percent through the succeeding 12 months. 

So, while a new car might seem a bit more snazzy, it simply might not have the financial advantages of a used option. When necessary, speak to your community banking agent to decide which option is best for you and discuss financing options.