Welcome to the topic “New car vs used car? Which One is Right for you?“(Pros and Cons)
When purchasing a vehicle, do you know whether you should buy a brand new car or a used one? Usually, people wanted to buy a new car because of the perception that it is more reliable, since it has not been used yet. For example when a new car malfunctions, you can have it repaired free under its included factory warranty. However, some people would opt to buy a used car especially if it has minimal mileage, since it is much cheaper. Here are some important matters to consider when buying a car:
PROS OF BUYING A USED CAR
A brand-new car always has warranty with the dealer. Having a warranty is one of the benefits of purchasing a new car. It covers major glitches and maintenance. Usually, it happens in the initial years of ownership. New cars will also require only minor repairs in its first years, thus, you can concentrate more on maintenance.
2. The maintenance cost for a new car is much lesser than a used car
For a new car, no maintenance is required for the first 6 months to one-year, or for the first few 1,000 km. Following that, you would probably require servicing.
3. Advanced technology and features
New cars have modern technology. It will denote that you may find cars with improved gas mileage and lower emissions. Additional crossbreed choices are available too. Moreover, it can lessen the amount you spend on transportation monthly. Moreover, upgraded technology can make it more convenient to link your smartphone. As well as it helps in listening to your favorite music or finding your route with GPS.
CONS OF BUYING A USED CAR
1. Higher Cost
It is a known fact that buying a new car naturally costs much more than a used car.
2. Expensive Car Insurance Premiums
While it may be backed by a warranty and service plan, insurance premiums are often higher on a new car.
3. Depreciation rate for a new car is much higher than an old car
A new vehicle is declared to drop to 20% of its value once you start to drive it the moment the car leaves the dealership.
PROS OF BUYING A USED CAR
1. Money Savings
Purchasing a used vehicle instead of a new one can save you money in some ways, especially if you happen to get a good deal with a vehicle that is barely used.
2. Resale Value
You might be able to sell the car for almost the same amount you paid in a few years. You can also benefit from obtaining solid financing options through a credit union or bank.
One of the biggest draws towards used cars is the fact you aren’t paying for initial depreciation. Buy a car that is one year old and you already have at least a 20% less depreciation. Buying used can save you money because the previous owner already paid for the depreciation loss.
CONS OF BUYING A USED CAR
1. Interest rate for a car loan is higher for an old car
Getting a car loan easy – new or old. But, the interest rate for a loan for an old car is much higher than a loan for a new car.
3. Higher maintenance cost
To keep an old car moving, you have to change the engine oil at least 3 to 4 times annually.
There might also be additional expensive services like changing the battery, cleaning of air filters, etc. Also if the car that you bought is not in good condition, then such costs can burn a huge hole in your pocket.
You might also have to compromise on the car’s color, features, and options to buy one with a better history or mileage.
You can prefer a new car if you are more interested in modern technology than in the amount. In addition, if you choose to drive a vehicle that is still under warranty, a new car also goes off well. On the other hand, when you select a low price and great value, purchasing a used car may be the better selection. Regardless of your choice, you must either pay cash for the vehicle. Otherwise, ensure that you can pay for the expenses if you finance. You should be able to compensate the car fully within three years.
Do your research, and ascertain that the model you are considering has excellent assessments and is dependable. If you know less or nothing about cars, you must have a reliable mechanic who will inspect the vehicle for you, specifically if it is used.
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