New or Used?

[spatta04]

Everyone tells me buy used (family) cause a new car loses its value when you drive it off the lot. Yet I look at it and there is 3things that appeal to me about new cars

1.Lower Interest Rates
2.Warrenty
3.Rebate & Incentives

My options right now are this
Used car such as
03-05 grand am 8-10k
04-06 focus 9-10k

New Car
(from the dealership as an internet price)
Toyota Yaris 13k
Nissan Versa 12,800k

I got a blank check from Capital One
I see the interest rate breakdown and term breakdown

I could get a used car at 10k for about 240 a month for 60months
I could get a new car at 13k for about 255 a month for 72months

What should I do?

[april_fest]

Originally Posted by spatta04

I could get a used car at 10k for about 240 a month for 60months

What should I do?

You get used cars at much cheaper rates. You need to take note book. Put down all the permutations and then buy a car.

Google a bit, there are lot of cars in the market

[Ray paulsen]

I can't tell you what to do, but I will tell you what I would do.

With a little homework from your choices a 2005 Focus in excellent condition with average miles and having a good credit rating will be somewhere close to $200 a month with a 60 month term.

Don't be fooled by 0% financing or lower Interest rates, in many cases if your paying cash a discount is suddenly available that will match what you think you are saving.

As for a warranty, if your buying a lease return from a Ford dealer and include a warranty your payments subject to type of warranty you choose should add about $15. to your payments,,, would I include a warranty with a used car purchase, most likely not, but to each his own

[leadlefthand]

My options right now are this
Used car such as
03-05 grand am 8-10k
04-06 focus 9-10k

New Car
(from the dealership as an internet price)
Toyota Yaris 13k
Nissan Versa 12,800k

I got a blank check from Capital One
I see the interest rate breakdown and term breakdown

I could get a used car at 10k for about 240 a month for 60months
I could get a new car at 13k for about 255 a month for 72months

What should I do?[/quote]

Based on the loan terms you presented, get the used car loan offer (I'd choose the Focus over the Grand Am but that's just my preference). It has a lower monthly and a shorter term.

But if you want to get a brand new car, choose the Toyota Yaris because Nissan cars in general depreciates faster than Toyotas.

If you want more info on used vs new, you may want to check this out:

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