GFA Federal Credit Union

Back to Blog List

Topics/Previous Posts

  • Mar 26, 2021

Thinking of Buying a Vehicle?

Learn the benefits of buying new vs. used.

Should I buy new or used?

When conducting car-buying seminars, one of the first questions I typically ask is “Who here is driving a new car?” And when two or three out of ten raise their hands, I ask “When are you getting it?” Point is, whether you buy new or used, once you drive it, it’s used. And often the only difference is how much you paid.

GFA’s Auto Advisors are big fans of used cars. Why? Because used cars cost less and are most often better values. Plus, for MA residents, the 6.25% sales tax and the excise tax ($25 per thousand dollar value) is less. For NH residents, the town hall fees are less.

When we refer to used cars, we’re not necessarily talking older cars with high mileage. Most times, we are helping our members purchase late-model used cars with low miles in great condition. Examples would be dealer demo’s, commercial or business-owned vehicles, off-lease vehicles (typically 2-3 years old with low mileage), or vehicles a person bought and their needs or tastes changed. Generally these are all great options for the next owner.

What’s the new/used trade-off?

Some members prefer the brand new option because they want the comfort of knowing they’re the first driver, because of the “new car smell”, because they may have more choices (including features and colors), or because of the new car warranty. All quite understandable.

There’s nothing like that new car smell. And if you’re more comfortable knowing nobody else has driven the vehicle, great. However, with the late-model used cars available through our large dealer network, we often have lots of choices. Plus, the Certified Pre-owned “CPO” vehicles often come with a better warranty than when the car was brand new.

Also, with used cars, you’re paying fifty cents on the dollar for options like sunroof, leather, and alloy wheels. For example, if you add a sunroof to a new sedan, the cost could be over $1200. But, a used sedan with a sunroof may or may not cost more than one without. And remember, GFA offers the same great rates on late-model used vehicles that are available for new ones.

What vehicles are better used-car values?

One of the reasons our Auto Advisor maintain such a large network of dealers is to get access to a wider used car inventory. While we’re often finding those “diamonds in the rough” or vehicles underpriced because they’re aged or at an off-brand dealer, certain types of vehicles tend to be better used-car buys.

For example; domestic cars like Chevy's, Dodge's, and Ford's tend to depreciate faster than Honda’s and Toyota’s, which makes them great buys for the second owner. Likewise, late-model luxury vehicles in general tend to be good buys, because the original owner covered the costly depreciation.

Other vehicles, like domestic trucks, aren’t traded in often, so with the low inventory, the prices stay up closer to new models.

So what do I do?

As mentioned at the start, our Auto Advisors are big fans of used cars. However, with everyone’s needs, tastes, and budgets being different, we recommend that you speak with our Auto Advisor BEFORE you go shopping. This way they can guide you through the process and ensure that, in addition to saving time and money, your buying experience is a good one and that you leave the dealership confident that you got the best deal on a vehicle that is right for you.

Click Here to learn more about our FREE Auto Advisor program. Or if you already know you want their free assistance call or text Jeff Scott at 978-407-9543 or email jeff@cuautoadvisor.com.

Back to Blog List

Close