Being in the market to buy a new car can be overwhelming, especially with all the ways to buy a car these days. The internet has made the new and used car market easily accessible to all, but the debate is still ongoing about purchasing a car with 0 miles versus 30,000 miles.

The truth is that buying a car is personal, so the real question is, what is better for you? Most car buyers are focused on value; that is why at Eastern Automotive, we believe buying a used vehicle tends to be the better choice for shoppers.

If you are trying to decide if you should buy a used car or a brand-new car, here are some factors to consider.

New Car Versus Used Care Depreciation

What is depreciation? It is the reduction of value over time. The rate of depreciation on brand-new vehicles tends to be accelerated. A new car can depreciate as much as 30% in the first year you own it.

Depreciation is not a tangible loss that owners can see, that is until they decide to sell their “new” vehicle. After a couple more years, your brand-new purchase may only be worth half of what you paid for it.

A huge percent of the depreciation has already occurred before you purchase a used vehicle. The previous owner most likely took a significant loss. That is why you can buy a used car at a much lower price, just a year or two after it rolled out of the factory.

Think about a vehicle’s value and useful life as a percentage if that helps.

Someone who bought a new 2018 vehicle decides to sell it after 30,000 miles in 2021. This hypothetical vehicle can reliably go 150,000 miles, so it still has 80 percent of its useful life left.

Now you have a chance to purchase 80 percent of that useful vehicle life for half (or less) than what the original owner paid for it in 2018. The vehicle is just as good and still has all the bells and whistles you’d expect from a nice modern vehicle – it’s just half off.

Affordability and Loans

Financing a new vehicle purchase with a long-term loan often leaves people with a lot of extra accrued interest on an asset that’s already lost a ton of its value. By the time you finish paying a new car loan, you may have paid $45,000 for a vehicle that you can only sell for $20,000 (if you’re lucky).

Financing a pre-owned car often lets borrowers:

• Take out less money
• Pay off loans quicker with far lower monthly payments
• Accrue less interest
• Avoid huge losses due to depreciation

Less Expensive Car Insurance and Registration

Most used cars will have lower auto insurance premiums than new vehicles. Renewal tags are also generally cheaper on pre-owned cars, trucks and SUVs. These expenses are essential to take into consideration because they must be paid monthly (insurance) or every two years (Maryland and Virginia registration renewal). 

A New Feel 

Just because you are buying a used car doesn’t mean it has to be old and outdated. You can buy a practically “new” used car without eating the depreciation cost of a brand-new model. Plus, even pre-owned vehicles are new to the buyer. 

Also keep in mind that reputable dealerships like Easterns Automotive perform thorough checks and restorative maintenance to make sure they’re only selling reliable pre-owned vehicles.

Get Access to Way More Vehicles in Your Price Range (Including Luxury Cars)

Buying used also opens up your options to purchase a luxury car that would be out of your price range new. You can get the speed, sporty look and the luxury aesthetic and features for far less than a brand-new model.

Luxury cars also depreciate faster than most other vehicles. In some cases, last year’s luxury car model can be half the price when purchased used. 

Make the Smart Choice by Buying Pre-Owned in Baltimore and Washington, D.C.

If you want to save the most money, opting for a used vehicle is almost always best. If you are in the market to purchase a car, we recommend seeing what Eastern Automotive has to offer. We are committed to serving local Maryland and Virginia drivers with the best pre-owned vehicles, affordable prices and flexible financing options. 

If you are looking for a used car, call us at (877) 867-1357 or visit one of our eight Virginia and Maryland locations in Washington DC, Baltimore or Frederick. You can also search our inventory online to see what’s available in a lot near you.

Every driver’s financial situation is unique, especially right now. COVID-19 has been extraordinarily tough on many families. Maybe you’ve had trouble finding work, or one of the normal wage earners in your household has had to forgo regular employment to stay home with your kids during the day.

There are a nearly endless number of reasons for people to be on a tight budget, but many of those reasons won’t prevent you from qualifying for pre-owned vehicle financing.

At Easterns Automotive, helping people in the Baltimore and Washington, D.C. metro areas qualify for great financing is one of the things that sets us apart from the competition.

However, getting a loan and purchasing a used car, truck or SUV may not be your only option. Another service that sets Easterns Automotive apart is our pre-owned vehicle leasing program.

When Might Leasing Be the Right Option for You?

Leasing is often the ideal solution for a certain type of driver, but there are some important restrictions to keep in mind. Depending on your transportation needs, these restrictions may not be disadvantages. Used car leases are:

• Recommended for drivers who just need a vehicle to commute around the Baltimore or D.C. metro areas because you’ll be limited on the number of miles you can put on the vehicle without incurring extra charges
• Ideal if you plan on getting a different pre-owned or new vehicle within the next few years
• Often cheaper, with monthly payments that are lower than a car loan

For people who just need a vehicle to run errands, get to school or commute to and from work, the mile restrictions generally aren’t an issue. If your job requires frequent commutes out of the metro area or out of state – or your family loves road trips – maybe leasing isn’t the best option.

The limited timespan of a lease makes it kind of like a long-term rental car. You can’t make modifications to the vehicle and there may be restrictions on how you can use your leased car or truck, but those restrictions aren’t a problem for many city commuters who are just looking for a reliable vehicle for local transportation.

You won’t be building equity in a leased vehicle the same way you would if you purchase the vehicle with financing. However, lessees do usually get a buyout offer at the end of their lease term.

If you’ve been happy with your leased pre-owned vehicle and you want to keep it at the end of your term, you can choose to purchase the vehicle for its dealership value minus the depreciation you’ve paid each month on your lease payments. The process is a little different than building equity through monthly car loan payments, but the end result is similar.

Why Leasing Could End with a Great Vehicle Purchase Opportunity

There’s a uniquely beneficial quirk when leasing a used vehicle if you do choose to take the buyout option at the end of your lease term.

Monthly lease payments, whether the car is new or used, are derived from a calculation based on the vehicle’s valuation. New car valuations are relatively static and generally dictated by the dealership and manufacturer.

Used vehicle valuations are a little different. In some cases, a lender may undervalue a reliable pre-owned vehicle. You might end up leasing a great car for a lower monthly rate than you’d pay with financing. Then, at the end of your lease, you’ll get a buyout option that may be well below the vehicle’s market value.

Can You Lease with No Credit or Bad Credit?

At Easterns Automotive we work with more than 30 car loan lenders to find workable financing options for drivers with all types of credit situations. We take pride in our flexible terms and our ability to find solutions for people with poor credit or no credit history.

If you’re concerned you may not qualify for an auto loan or a pre-owned vehicle lease, call us. You might be pleasantly surprised by some of the advantageous rates and terms we can help you find.    

Find Out if Leasing a Used Vehicle in Maryland or Virginia Is the Best Option for You

If you need a replacement vehicle to commute around the city but aren’t sure you want or would qualify for a used car loan, leasing may be a great alternative. Easterns Automotive Group works with people in all types of financial situations to get them in reliable, high-quality pre-owned vehicles.

Don’t hesitate to give us a call at (877) 867-1357 or visit one of our eight Virginia and Maryland locations in Washington DC, Baltimore or Frederick.