Should You Buy a New or a Used Car?

December 26th, 2017 by

Should You Buy a New or a Used Car?

The decision to buy a car can be extremely exciting and exhausting at the same time. The first major consideration that you need to make is the choice between a new and a used vehicle. It is always tempting to invest your money in a brand-new model that suits your needs. However, it entails huge investments when compared to used vehicles that save a lot of money. Buying used is a practical option if you want to save extra on your car purchase. Both options have their advantages and drawbacks. You need to assess them according to your suitability and budget.

Why Invest in a New Car?

A new car is accompanied by a manufacturer’s warranty and rebates that make your purchase worth the investment. In the initial years, the car does not need any major repairs. The maintenance is also covered under the warranties and ownership programs run by the dealerships. It ensures a hassle-free and low-cost ownership over the first few years. Usually, you can get additional warranties that extend up to five years in the case of a new car.

Moreover, brand-new models are integrated with cutting-edge technologies and superior fuel efficiency. They have the latest safety features to ensure an enriching driving experience. Plus, financial institutions and banks provide easy loan terms and low interest finances on the purchase of a new car.

What’s Not So Great About a New Car?

The most disappointing factor in the purchase of a new car is the depreciation incurred on this vehicle as soon as it is driven away from the showroom. The valuation of your car falls and can never be the same after it is taken on the road. In fact, it can accumulate a depreciation up to 20% by the end of the first year itself.

Apart from the depreciation hitting its valuation, there are other ownership expenses like sales tax and registration fees. These expenses are often higher because they are ascertained according to the cost of vehicle. In the case of new car, the cost of insurance is also high.

Why Invest in a Used Car?

When buying a used car, you don’t need to worry about the initial depreciation. Even if you are buying a one-year old car, you will incur negligible depreciation. This amount will be lesser than the cost incurred when buying a new car. The cost of depreciation is already factored in the price of a pre-owned vehicle. Buyers looking for an affordable car can make this choice for cost savings and a low down payment. They can purchase a high-end sedan or crossover with the budget for a smaller, new vehicle. There are many resources where you can check customer reviews and performance ratings of the bestsellers in each category.

What’s Not So Great About a Used Car?

The performance and maintenance history of a used car are the major concerns for many buyers. It may require regular repairs adding up the pressure on your wallet. However, you can mitigate these chances by opting for a certified used car that comes with a comprehensive warranty and lots of add-on services provided by the dealer.

Do your research and explore each option deeply to make the right choice.

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