Buy a New Car, a Used Car, or Lease... What's Right for You?
New cars, used cars, and auto leases all have pros and cons. Today, the Stonehill Motors team is here to help explain these different choices and how they might affect your future finances and happiness.
You already know Stonehill Motors proudly offers quality, affordable used cars, trucks and SUVs for sale. There are times, however, when a lease makes sense. And we can understand why people might choose to buy a brand-new car.
Our goal with this piece is to build that relationship with our community, including customers in:
Bodfish
Weldon
Onyx
And Ridgecrest
Our customers even come from Bakersfield, Porterville, LA County, and Arizona!
So, let's dive in. As a licensed auto dealership in Kern County, we'll explore the pros and cons of buying new cars, buying used cars, and leasing. We will describe the best customer for every option. As always, we offer this information free to all, in an unbiased and honest way, written by licensed auto dealers.
The Pros and Cons of Buying a Brand-New Car
Even though we sell used vehicles at our dealership on Lake Isabella Blvd, let's start with the reasons you might like a new ride.
Pro: The Swagger!
There is something special about buying a new car at a big dealership, especially if you have an excellent credit score (780+).
If you have the credit clout and you're ready to show off a brand-new ride, we get it.
It feels good to drive a new car off the lot. They smell good. The latest features might seem top notch. And you might be the envy of the neighborhood, if only until next year when your new car starts looking dated.
Beyond showing off your new car and enjoying the latest features, another benefit of a brand-new car is the warranty.
Pro: New Cars Come with Manufacturer's Warranties
New vehicles sold in the US usually come with a warranty. They vary from one brand to the next, but most offer at least a 3-year / 36,000-mile warranty.
As of September 2026, the longest used car warranties come from:
Hyundai
Kia
Genesis
And Mitsubishi
These brands offer 5-year / 60,000-mile warranties.
If you only have one vehicle in the family and cannot count on the use of another car, we can see how a warranty brings peace of mind.
However, brand new vehicles can be lemons, even with a new car warranty!
Con: New Cars Can Be Lemons
We've written about California Lemon Law before. Lots of brand-new cars have major problems.
Consider the Jeep Death Wobble, For Instance
Jeep customers went through this recently with brand new Jeeps. Gorgeous new Jeeps were coming off the line with a major "death wobble." As of June 2026, 16% of new Jeep owners experienced the "death wobble" and had to have their vehicle repaired at the dealership.
The Jeep death wobble would often pop up when drivers were at highway speeds, 60 mph or higher. Then the vehicles would start jumping all around the road. It was a terrifying and dangerous situation for the new Jeep owner, and everyone else on the road.
Some of these Jeeps ended up with Lemon Law titles, and Jeep had to buy back those cars.
Our point is this: a vehicle is a machine. Even a brand-new car can have major problems. And nothing is more frustrating than making a huge car payment on a vehicle that's in the shop for weeks at a time.
Warranties are helpful in these situations, but they don't always cover every issue. And they don't cover damage that might happen to your car. (That's what full coverage insurance is for, and we've written about insurance requirements for car shoppers before.)
Warranties Don't Cover Everything
There are parts of your new vehicle which are never covered by any warranty.
These typically include:
Brake pads
Glass
Windshield wipers
Tires
Tires and brake pads, for instance, are consumable items. That is, you use them up, just like you use gasoline and need oil changes.
Con: Sometimes New Features are Buggy
We've bought our share of brand-new cars. We've been attracted by the awesome new technology. And sometimes, those hot new features never seem to work right.
If the issue isn't safety related, it may be a long time until the manufacturer figures out the repair, if ever. We experienced this issue in person once, buying a 2020 Dodge Challenger. The U-connect "info-tainment" system never worked well, and Dodge had no cure for it.
Pro: You Might Be Able to Get Out of an "Underwater" Auto Loan with a New Car
This might be a very helpful point for customers who owe a ton of money for their current car.
If you owe a lot of money on your current vehicle, new car dealerships might be able to help you roll those funds into a new loan.
You still owe that money, but you owe it for a newer car.
At our dealership, we see tons of folks "upside down" and "underwater" on auto loans. In short, if you owe much more than your car is worth, it might make sense to trade it in for a new vehicle.
Unfortunately, about 1/3 of auto buyers currently owe more on their vehicle than it will be worth – ever!
We're not talking about $1,000 or even $5,000. But we see people driving vehicles worth $5,000, which they still owe $20,000. That's $15 grand in negative equity! If a customer can move that debt onto a more expensive vehicle, using dealer rebates and such, they might break even on debt. Especially if their credit is awesome and the interest rates are low.
However, that new car will depreciate a lot, right away. So be sure to think it through before you make the deal.
Con: New Vehicles Depreciate Quickly
In our opinion, new vehicle depreciation is the most important issue.
Depreciation means loss of value. The very moment you sign the contract and drive away in your new car, it becomes a used car.
It depends on the specific vehicle, but a brand-new car, truck, SUV, or van immediately loses 10% - 30% of its value the day you take it home. We've written about this at length on our blog before.
Beyond that instant depreciation, your new car will continue to lose value with:
Every mile you drive
Every month you own it
Any accident or damage that happens
If the manufacturer comes out with a newer, sleeker body style, or a fresh technology that everyone loves, your ride might depreciate more because it looks older right away.
Think of it this way; a brand-new Toyota Camry without any bells and whistles starts at about $31,000. The moment you leave the lot, it's worth $28,000. You will still make payments on that missing $3,000 of value.
And you will continue to pay interest in those missing funds, for years.
That's why most financial experts say that new cars are terrible investments. They don't hold their value. You will lose money at once, and you will continue to lose money for years.
You'll also need full coverage insurance and gap insurance.
Con: New Car Insurance is Expensive
When you get a new vehicle, the lienholder (the entity who loaned you money) will require you to carry full coverage insurance. You will probably also need gap insurance.
In short, the lender needs to know they will be paid if something happens to the vehicle. There are many factors at play, like the value of your car, your age and driving history, and even your credit score. For now, just know that new car insurance can be a major monthly cost.
Now, let's move on to the pros and cons of buying a used vehicle.
The Pros and Cons of Buying Used Vehicles
At Stonehill Motors, we specialize in used trucks, cars, vans, and SUVs. This is the home of our hearts, and we love what we do! In our eyes, buying a used vehicle is a much smarter investment.
Pro: Used Cars are a Lot Cheaper
This is the biggest selling point of a used car. You will not have a loan for $50,000 on a sedan, or $100,000 on a new truck.
Pro: That First, Big Depreciation Hit Happened to Someone Else
Earlier, we explained that a new car becomes a used car the moment you leave the lot.
When you buy a used car, that huge financial hit has already happened. Your car's value isn't going to change when you leave the dealership.
Used cars do depreciate, of course. The value of any vehicle becomes less over time, even if it's garaged most of the time.
Pro: Paying Cash Saves Money
Not every customer can buy a car with cash. But we try to offer cash cars for sale under $10K all the time at Stonehill Motors. These cars are great value because they can save you a ton of money.
If you pay cash for your vehicle, you will not:
Have a monthly car payment for years
Worry that your car can be repossessed if you miss a payment due to illness
Pay thousands of dollars in interest over time
Furthermore, since there is no lender involved, you can legally drive in California with a liability-only insurance policy. You will save a ton on insurance this way. However, if your car is totaled in a wreck, your liability insurance will not help you buy a new car.
Pro: Used Cars Cost Less to Insure (Usually)
The choice to buy a used car might be about your budget. If you want a lower insurance bill, used vehicles are the only way to do so.
You can choose to buy full coverage auto insurance if you like, and it will probably still cost much less than a new car policy.
Of course, there are exceptions. A used $300,000 Bentley will cost a lot to insure.
Pro: You Can Buy 3rd Party Warranties on Most Used Cars
One of the pros of buying a new vehicle is the warranty. The good news is that you can buy a warranty from a dealership, even on a used car.
There are a few exceptions. Vehicles 20 years old, or those with 200,000 miles can be difficult to warranty.
Are 3rd Party Warranties as Good as New Car Warranties?
That depends on your personal finances and view of the car. Overall, we think they're a great investment. We've seen warranties replace expensive transmissions for almost nothing.
Here at Stonehill Motors, we sell warranties through GWC.
We choose GWC, because in addition to mechanical failure, they also cover:
Rental cars if your vehicle breaks down
Towing and roadside aid during the warranty period
And trip interruption coverage, which would help pay for a hotel if your car broke down out of town
We like these warranties because they can be customized. If you only want the basic mechanical parts covered (like the engine and transmission), your cost is lower.
If you want all the bells and whistles covered (like a touchscreen and backup camera), they cost more.
If you want 3 months of coverage, we sell that. If you want 5 years of coverage, we will sell that, too.
And remember, some parts of every car are consumable. Brakes, tires, oil changes and so on, those things are not covered by any warranty.
Con: You Don't Get the New Car Swagger
Some people base their identity and self-worth on their vehicle. We all do this to some extent; it's okay!
If your image needs to own a brand-new car every few years, that's fine. Though, you might still get that same excitement from a high-end used vehicle, or a very rare used car, a classic auto, or a replacement of a favorite car you had back in the day.
A Note on Car Dealer Transactions vs Private Party Sales
We'd like to point out that private party sales do not give the consumer the same amount of confidence as a used car & truck dealership sale.
While there are some good deals in the private market, the risk of getting scammed is much higher. This is especially true on Facebook Marketplace and Craigslist.
We've written a lot about how to avoid scams when shopping for cars and trucks; we won't go down that rabbit hole here.
Just know you have a lot more protection as a car shopper when buying from a reputable, licensed auto dealer, like us at Stonehill Motors.
Our customers know:
The vehicle just passed a smog test
The title is clean (not salvage, junk, or Lemon Law)
The vehicle is not stolen
The odometer is legitimate
And we will handle all the DMV paperwork on your behalf
These things aren't always true for private party sales.
Now that we've explored all the reasons we prefer buying used cars, let's talk about leasing.
The Pros and Cons of Leasing a Vehicle
Leases are not sales. A lease is like a long-term rental.
When you lease a vehicle, you will:
Put down a significant down payment
Agree to pay a monthly bill
Agree to have the car serviced at specific times and mileage
Agree to a mileage limit on your driving
Agree to have full coverage insurance
And have the chance to buy that car at the end of the lease
Most leases are 2 years long.
We can see how attractive leases are to certain customers. If you love the new car swagger every two years, a lease will boost your ego.
However, if you commute from Wofford Heights to Bakersfield every day (120 miles per day), you can expect to put at least 30,000 miles per year on a car. Leases usually limit a driver to 12,000 or 15,000 miles per year. People don't always think through math, and they end up owing tens of thousands of dollars at the end of the lease.
In those cases, people end up spending huge amounts of money on a vehicle they will never own. Nor will they ever have equity in a vehicle to use it as a trade.
Are Car Leases Worth It?
A lease can be a good fit for a certain customer. If you don't commute very far (less than 30 miles per day), and if you have expendable income, and your credit is great, leases can make sense.
However, most folks will find they save a ton of money by buying a used car when compared to a lease.
Final Thoughts: Why We Sell Used Cars
Someday, we're going to write an article really explaining how we got into used car and truck sales.
But the short answer is this: new cars are a bad investment for 99% of buyers. No matter how you look at it, unless you pay cash for a brand-new ride (to the tune of $30,000 - $100,000), you will lose money. You might lose tens of thousands of dollars on the first day! Then you will pay interest and insurance on that lost money.
They're just not a good financial choice.
With that in mind, we invite you to visit our website and follow us on Facebook. Stop by the shop any time to see our inventory and let us know what you'd like to see. We're always shopping for used cars, trucks, SUVs and vans for our customers, and we look forward to earning your business for life.
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