Plus a Bonus Look at Refinancing Instead
Smart money decisions make a difference. You might want the shiny new car, but at what expense? You might want the used vehicle to save some money, but at what expense? There’s always another side of the story to consider when making any decision. That’s why it’s called a “decision”!
At the Ashland Community Credit Union, we’re here to help you make smart money decisions that set you up for long-term success. If you’re thinking about upgrading your ride, you might be asking: “Should I buy new, go with a used car? And perhaps you should also consider whether you should simply keep your own.
Let’s break down the pros and cons of each choice, and introduce a third option you might not have considered that could save you money right now.
Buying a New Vehicle: Pros and Cons
✅ Pros:
- Reliability: New vehicles come with manufacturer warranties and the peace of mind that you won’t need repairs anytime soon.
- Latest Technology: New models often feature improved safety features, fuel efficiency, and modern conveniences like advanced infotainment systems and driver assistance tech.
- Lower Financing Rates: Ok, this is a tricky one, because where you do your banking makes a difference. At many banks, new vehicles often qualify for lower interest rates. That’s true at the Ashland Community Credit Union too, but those same low rates also qualify for many used cars. Regardless, find a lower rate, including our recently lowered auto loan rates as low as 4.71% APR for 2020 and newer vehicles.
❌ Cons:
- Higher Cost: New cars have a higher purchase price, which can mean higher monthly payments.
- Depreciation: A new vehicle can lose 10–20% of its value within the first year and nearly 50% over the first five years.
- Higher Insurance: Insuring a brand-new vehicle generally costs more than insuring a used one.
Buying a Used Vehicle: Pros and Cons
✅ Pros:
- Lower Purchase Price: You’ll usually pay significantly less upfront for a quality used vehicle.
- Slower Depreciation: A used car has already taken its biggest depreciation hit, so its value holds steadier.
- Lower Insurance Costs: Used cars are often cheaper to insure.
- Lower Auto Loan Rates: Again, a tricky answer. Because other lenders often raise the price of loans for used cars. At The Ashland Community Credit Union, our loan rates for vehicles from model year 2020 and newer are as low as 4.71% APR.
❌ Cons:
- Higher Financing Rates: See above if you’re confused. Used vehicles can sometimes carry higher interest rates—unless you access a lower rate through a credit union like ours here at ACCU.
- Potential Maintenance: Depending on the age and mileage, you may face more frequent or expensive repairs.
- Fewer Options: The exact features or models you want might be harder to find in the used market.
Bonus: What About Refinancing Your Current Vehicle Instead?
Maybe that current car isn’t so bad. Take another look, and maybe a drive around the block. Refinancing your current vehicle could lower your monthly payment and reduce how much you pay in interest over the life of your loan.
Why consider refinancing with ACCU?
- Our new lower auto loan rates as low as 4.71% APR for vehicles 2020 and newer is well below both local and national averages. And it’s available for refinanced vehicles as well. So if your current interest rate is higher than that, you might be able to keep your car and save some money!
- Keep what you know: If your current car is in good shape, refinancing lets you save money without giving up something that already works.
- Fast and simple process: ACCU makes refinancing easy with local support, flexible terms, and no hidden fees.
So, What’s the Right Choice?
There’s no one-size-fits-all answer—but there is a smart financial move for your specific situation. Whether you choose new, used, or refinance, we’re here to help you crunch the numbers and understand the options.
Stop by our branch, give us a call, or visit us online to talk with a member of our lending team. At Ashland Community Credit Union, we believe that informed decisions lead to better financial futures—and we’re here to walk with you every step of the way.
