New or Used? Your Summer Car-Buying Guide
Summer is prime time for car shopping! With dealership promotions, new inventory, and sunny days ideal for test drives, it’s no wonder many shoppers ask: Should I buy new or used?
At CAMPUS USA Credit Union, we can help you make the best financial choice based on your needs, budget, and goals. This guide includes the most important factors to consider before driving off in your next car.
Step #1: Determine Your Car-Buying Budget
Before you browse dealership lots or online listings, take time to crunch the numbers.
- Start with your monthly budget: Use our free auto loan payment calculator to estimate payments.
- Determine a down payment: Aim for 20% on new and at least 10% on used vehicles.
- Include your trade-in: Your current vehicle can help reduce your total loan amount.
When setting a budget, remember that new vehicles typically have higher prices and monthly payments. But that’s not all you should consider in your car-buying decision.
Step #2: Account for Ongoing Ownership Costs
Beyond the price tag, car ownership includes ongoing expenses that may vary between new and used cars.
Fuel Efficiency
- New Cars: Typically more fuel-efficient due to updated technology.
- Used Cars: Slightly less efficient—especially older models—but recent-year used cars can be comparable.
- Research first: Visit the official U.S. government source for fuel economy information on any vehicle.
Insurance Premiums
- New Cars: Tend to be more expensive to insure.
- Used Cars: Generally come with lower premiums.
Maintenance & Repairs
- New Cars: Fewer issues, often covered under warranty or complimentary maintenance programs.
- Used Cars: May require more upkeep, but “certified pre-owned” models often include limited warranties.
Tip: If you purchase a “certified” pre-owned car from a dealership, they often include a warranty for a specific timeframe. Consider the age and mileage of any used car to gauge future maintenance needs.
Step #3: Consider How Long You’ll Own the Car
How long do you typically drive a vehicle before switching?
- Long-Term Owners: A new car might be a smarter investment due to lower maintenance over time.
- Short-Term Owners: Used vehicles can be more cost-effective, especially if depreciation is a concern.
Maintenance & Repairs
- New Cars: Fewer issues, often covered under warranty or complimentary maintenance programs.
- Used Cars: May require more upkeep, but “certified pre-owned” models often include limited warranties.
Example: A two-year-old certified used car may still offer several years of reliable service without the hefty price tag of a new one.
Step #4: Evaluate Your Need for Bells & Whistles
Modern cars are equipped with newer technology:
- New Cars: Offer the latest safety and infotainment systems.
- Used Cars: Feature slightly older tech, but many late-model vehicles still include advanced options.
Ask yourself:
- Do I need enhanced driver-assistance tools?
- Are entertainment upgrades like Apple CarPlay a priority?
If so, a new vehicle may be a better option. If not, a well-equipped used car can deliver plenty of value.
Step #5: Weigh the Pros & Cons
Your priorities and preferences are unique, so only you know which choice best matches your lifestyle and budget. Carefully weigh what matters most to you to ensure your decision aligns with your needs.
Pros & Cons of New Vehicles
| Advantages | Drawbacks |
|---|---|
| Full Manufacturer Warranty | Higher Purchase Price |
| Latest Tech & Safety Features | Higher Insurance Premiums |
| Fewer Repairs in Early Years | Faster Depreciation |
| Larger Inventory Selection | Higher Sales Tax & Fees |
Pros & Cons of Used Vehicles
| Advantages | Drawbacks |
|---|---|
| Lower Purchase Price | Potential for More Repairs |
| Lower Insurance Premiums | Lower Fuel Efficiency |
| Slower & Less Depreciation | Limited Selection of Cars & Features |
| “Certified” Warranty (if available) | Shorter or No Warranty |
Step #6: Secure Financing - Get Pre-Approved with CAMPUS USA Credit Union
Before you shop, get pre-approved to simplify the process and give yourself an edge:
- Shop with confidence at the dealership
- Understand your exact budget and know exactly what you can spend
- Strengthen your negotiation position when you purchase like you have cash in hand
No matter what road you take – new or used – securing proper financing is crucial to scoring the best deal on your new ride. Our team will work with you one-on-one to explore your financing options and ensure your next car fits within your budget.
CAMPUS Can Help!
Whether you choose new or used, the right car is out there, and CAMPUS USA Credit Union is here to help you find it. Let’s get you pre-approved quickly and on the road with financing tailored to your lifestyle and budget.
Please stop by any of our convenient Service Center locations, start your application online, or call 800-367-6440 to speak with a CAMPUS Representative today.
Frequently Asked Questions (FAQs)
- What are the main benefits of buying a used car?
Used cars offer lower purchase prices, slower depreciation, and often cheaper insurance premiums. - Is it harder to get financing for a used car?
Not at all. CAMPUS USA Credit Union offers flexible loan options for new and used vehicles. - Do new cars always come with a warranty?
Yes, most new vehicles include a manufacturer’s warranty, and many come with complimentary maintenance. - How do I know if a used car is reliable?
Look for certified pre-owned options, request vehicle history reports, and consider age and mileage. - Can I trade in my current car?
Yes, and the value of your trade-in can be applied to your down payment to reduce the amount you finance. A CAMPUS Representative can help you find your vehicle’s value before you head to the dealership.
By CAMPUS USA at 12 Jun 2025, 08:00 AM