Peoples Credit Union member purchasing a used car in a car lot

Aside from housing costs, buying a new or used car is one of the biggest purchases you’ll make in your lifetime. 

So if you’re in the market for a new car, but don’t want higher monthly payments, you may find yourself considering a used car. On the other hand, if you want more customized features and updated technology, you might be leaning toward a new car.

Here are some helpful insights we at People's Community Federal Credit Union have created as you weigh your options between buying a new car versus a used car.

Advantages and Disadvantages of Buying a Used Car

Overall, buying a used car can save you money upfront and is faster to pay off, but there is the chance of it having wear and tear and it not coming with a warranty. Here are other things to consider:

Pros of Buying a Used Car

  • Cost savings
  • They’ve already taken a huge amount of depreciation
  • Faster payoff
  • Generally cheaper to insure
  • Warranties may be available
  • Lower insurance premiums

Cons of Buying a Used Car

  • A lot of unknowns
  • More wear and tear
  • Fewer customization options
  • Most don’t come with warranties
  • Higher mileage
  • Possibility of being stuck with repair costs

When buying a used car, it’s a good idea to have it inspected by a licensed mechanic to ensure the vehicle is in good condition, and that there are no safety concerns.

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Why consider certified pre-owned used cars?

Certified pre-owned (CPO) cars are gently used, low-mileage cars sold by dealerships after they’ve been thoroughly inspected and reconditioned by licensed mechanics. Buying a CPO is almost like buying a brand new car, but with lower pricing. Here are some benefits to buying Certified pre-owned cars:

  • More affordable than brand-new cars
  • Certified and thoroughly inspected by trained mechanics
  • Most come with manufacturer warranties and benefits, such as roadside assistance
  • They’ve already taken a huge amount of depreciation
  • Free vehicle history reports

With CPOs, you can trust they’re in good operating condition. Figure out your budget here with our car affordability calculator.

Finance Options

Once you’ve picked your car, it’s time to explore your financing options. Dealer financing can be convenient, but remember that dealers often mark up rates to make a profit.

Direct lending through a credit union, like People's Community Federal Credit Union, often provides the most competitive rates and flexible terms. You’ll get pre-approved before you shop, which gives you negotiating power at the dealership and helps you stay within your budget.

And when you finance with People’s, you know you’re getting our best rate because all of our members get the same great rates when they qualify, regardless of credit score. See our current rates here.

At People's Community Federal Credit Union, we’re here to help you navigate these decisions with confidence.

Auto Financing Made Easy

Deciding whether to buy a used car or a new car is a serious financial decision. Before you buy, carefully look over terms, compare monthly payments, and shop around for auto rates. Also remember, you can always negotiate your payments and terms with the dealership, whether you’re buying used or new. 

When you’re ready to finance, consider People's Community Federal Credit Union. We offer a variety of loan types and 100% financing for qualified members. Best of all, our loan rates are the same for all members of PCCU!

Reach out to one of our team members by giving us a call or visiting one of our branch locations.

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