Buying New vs. Used Car: 6 Types of People Who Should Choose a Used Car
Mar 19, 2025
4 min read
Most people who have thought about buying a car have a big question: should I buy a secondhand car or new? Deciding to purchase a car is a big step that comes with big questions. Is buying new the best choice? Is it okay to buy a used car? Are there advantages to buying a new vs. used car?
In truth, a brand new car may not be the best deal for everyone. Pre-owned vehicles can come with advantages, and your choice should be based on those factors. So if you’re asking yourself, “Should I buy a new car or a used car?”, check out this list of people who may appreciate what the used car lot has to offer.
Who Should Buy a Secondhand Car? 6 Reasons to Choose Used Over New
Students: Why Buying a Used Car May Be the Smart Choice
Cars are expensive. But brand new car costs don’t just stop at the sticker price. New cars come with auto loans, licensing, insurance and maintenance costs — expenses most students (even those with enough cash or a job to support themselves) don’t have room for in their budgets. One of the most obvious advantages of buying a used car is a lower monthly payment. Many students’ needs consist of having reliable transportation between school and work and other activities, which is a great reason to look for a budget-friendly, reliable used car that still leaves space in the budget for late-night pizza runs with friends (or textbooks next semester).
If you’re searching for a pre-owned vehicle on sites like Craigslist or Facebook Marketplace, be sure to brush up on vehicle history reports to avoid scams and make a good purchase.
New Graduates: Should You Buy a New or Used Car?
Congratulations! You’ve earned your degree, and now you’re about to start your first post-grad job, one that probably comes with a bigger salary than you’re used to. It can be tempting to take that money and make a big splashy car purchase. But before you head down to the dealership and sign papers on a new car, consider this: within the next few months, you will likely need to find an apartment, buy furniture and start paying off your student loans.
New grads have a lot of expenses to budget for already — adding a new car to the mix may not make sense immediately after graduation. If you have a certified pre-owned car that runs well, consider changing the oil and doing a bit of routine maintenance so that you get more mileage out of your car. Used cars typically come with lower car insurance rates than new models, saving you even more. And if you need a car, check out more cost-effective used options. Your future self will thank you.
Buying a Home? Why a New Car Purchase Might Hurt Your Mortgage
If you are planning to buy a house or refinance your mortgage, lenders will tell you that now is not the time to take on any new auto loans — including a new car with high insurance costs. Sometimes, people receive an initial mortgage approval and then buy a new set of wheels. But experts warn that this could put your new mortgage in jeopardy. If your car breaks down while you are in the middle of the house-buying process, and you urgently need a new automobile, consider buying a used car with low miles and a lower monthly payment to keep you in good financial standing.
Researching the Best Deal? Used Cars May Save You More Money
You have likely heard that a car depreciates the moment you drive it off the lot. While in truth, it’s not quite that dramatic, cars do depreciate more in the first year than any other year after that. Most cars are built to run well for over 100,000 miles. Would you rather buy the new car and pay $30,000, or would you rather buy a gently used car that is one or two years old, and spend $17,000 for the same car? The smart, thrifty buyer will likely choose the latter, electing to let someone else take the depreciation and saving a large percentage of the purchase price. This kind of research can benefit any car buyer.
Love to Negotiate? Why a Used Car May Be Your Best Bargain
Maybe you’re the sort of person who always shops for the best deals, from groceries and services to clothing and insurance policies. If that describes you, then you probably already know that anyone buying a car can find (and negotiate) the best deals on models that the dealership is trying to move off the lot.
Some dealers can offer bigger discounts based on the incentives they receive from the manufacturer. Dealer incentives are responsible for all sorts of discounts, especially when the manufacturer is trying to get dealerships to make way for new inventory. Often you can find a better deal — or negotiate a better price — if you are willing to look at a slightly used car that they want to get out of their inventory.
It’s a deal shopper’s dream, the sort of thing they live for, and since people who love to negotiate can also get a much better price, it’s the way to go. Often, a maintenance package will be included, too.
Luxury for Less: Why Social Climbers Should Consider a Used Car
Many people look at their cars as a status symbol, and driving a “luxury” car can fill them with pride. This sort of person thinks, “Why drive a Honda when you can afford an Audi?” For the same price as a new Honda Pilot, you could be driving a Land Rover, an Audi or a BMW that is just a year or two old. Many dealerships will offer maintenance packages and warranties that cover the car from bumper-to-bumper. These luxury brands tend to be more timeless and don’t make drastic design changes from year to year, so the car’s age isn’t as apparent.
How to Find the Best Deals When Buying a Used Car
If you think buying a used car might be the right choice for you, do your research before you step on the car lot. Plan your budget and have an honest understanding of what you can afford to pay. Arm yourself with knowledge that will help you determine the value of the vehicle, car insurance, maintenance cost and sales tax. Kelley Blue Book and Edmunds have tools that are easy to use.
If you think you’ve found your dream car, ask the dealer for a Carfax report, which will give you the vehicle history, and details about accidents, previous owners and flood damage. Car dealers usually supply this to you free of charge. You can also ask to have the car looked over by a mechanic you trust before making the final purchase.
Protect Yourself and Your Investment
Whether you end up getting new or used, buying a car is a big decision. Make sure to contact your local Farm Bureau agent to compare car insurance costs and to ensure you’re covered when you drive off the lot.