Is it Better to Buy a New or Pre-Owned Car?

What are the advantages and drawbacks of buying a new vs. pre-owned car? Thanks to widespread inventory shortages, many Southfield and West Bloomfield-area buyers who ordinarily would have opted for a new Mercedes-Benz are carefully considering the benefits of pre-owned models, too. Interested in learning more? Get the details on new vs. pre-owned car options in this guide from the team at Mercedes-Benz of Bloomfield Hills!

New vs. Pre-Owned Car: Which is Right for You?

New Car Advantages

• Latest Technology: When you buy or leave a new car, you can expect the newest Mercedes-Benz technologies, including plug-in electric powertrains, Mercedes-Benz Airstream, and Mercedes-Benz BlueTEC®.
• Greater Fuel-Efficiency: Across the board, newer cars achieve better fuel economy. Instead of V6 and V8 engines, many new vehicles run instead on more efficient turbo turbocharged 4-cylinder engines.
• Full Warranty Coverage: New cars are protected by a bumper-to-bumper limited warranty and a powertrain warranty. These cover most of the car’s components for a certain period.

New Car Disadvantages

• More Expensive: New cars are much more expensive, and it may be harder to qualify for a loan if you have had trouble with your credit score in the past. You can also expect a higher tax rate and expensive tech repairs after your warranty coverage period is over.

Pre-Owned Car Advantages

• Higher Value: With the proper maintenance, a pre-owned model from a luxury brand like Mercedes-Benz is built to last.
• Slower Depreciation: New car value begins to diminish the moment you leave the lot, with the greatest proportion lost during the first five years that the car is driven. Pre-owned cars have already gone through this phase and will lose value much more slowly.
• Less Chance for Negative Equity: You have negative equity on your car loan when the car is worth less than what you owe. If it is stolen or totaled, you may get stuck paying off the loan—even though you can’t drive the car. Pre-owned car financing involves a much smaller loan principle, so going “upside down” on the loan is far less likely.

Pre-Owned Car Disadvantages

• Higher Interest: You can expect to pay a higher interest rate for a pre-owned car. However, keep in mind that the loan term will likely be shorter, so you’ll owe less interest overall.

Why Shop with Mercedes-Benz of Bloomfield Hills?

Here on our lot near West Bloomfield, you’ll find a fantastic selection of the most in-demand new Mercedes-Benz models and a hand-selected inventory of pre-owned models. Our team is here to help you find the vehicle that best fits your driving needs and budget! Still researching new vs. pre-owned car options? Check out our helpful guides on how to buy a new car and what to ask when buying a pre-owned car.