New vs. Used

When in the market for your next vehicle, the first consideration is whether to buy a new or used SUV. Buying a brand-new sedan certainly has its benefits. Most notably, new vehicles can have the very latest safety gear and engineering improvements. Plus, with a new SUV you know what you’re getting, and it is backed by a comprehensive factory warranty. You don’t have to worry about potential service problems or concealed collision damage. Further, you can have your choice of color, trim line, and option level. And financing rates are typically lower than for a used vehicle.

The key drawback with buying a new car is rapid depreciation. A new SUV can shed half its value in its first two or three years on the road. If you have financed the new car with a low down payment, you can easily find yourself "upside down" on the loan, where you owe more than the car is worth.

Used SUVs can be a welcome alternative. The used-car market is about three times the size of the new-car market, so there’s certainly plenty of choice out there. One of the best strategies is to find an SUV you like that’s only a couple of years old. Such an SUV has already taken its biggest depreciation hit, which works to your advantage, but it should still have most of its useful life ahead of it. Modern SUVs, if soundly maintained, can stay on the road a 150,000 miles or long. Rust, for instance, isn’t nearly the problem it was years ago. Solid-state electronics have eliminated the need for a lot of regular servicing that used to be necessary.

The key to selecting a good used SUV is to focus on reliability, even when a prospective automobile is still covered by its original factory warranty. Look for an SUV that has done well in our Reliability judgments. For many years the reliability stars in our records have mostly been Japanese-nameplate models, especially those from Honda, Nissan, Subaru, and Toyota. But a handful of domestic models have been standouts, as well.

CR’s reliability scores are no guarantee, of course, but they do carry the weight of probability. If you shop for SUVs with top-notch reliability scores, the odds are on your side. At the same time, every used car is unique. A careful pre-purchase inspection remains a vital part of the process. If you do your homework and take care in the car selection, a used sedan can save you significant money in the long run.

Whether buying new or used, it is important to due your home to choose a good model, and follow that up with effective negotiation.

Learn more in our guides to buying a new or used car.
See upcoming sporty cars in our New Car Preview.

See also:

GPS Navigation Systems

Car batteries

Car seats

Special Section:
Guide to Driving Green