What Are the Advantages and Disadvantages of Buying a Used or New Car?
Signing on the dotted line to close the deal of a new car is the most exciting decision for car buyers. It is alluring to invest in a vehicle that fits your needs and has not been driven by anyone else. On the other hand, a used car is a practical option that saves you more money. It makes sense due to the immense savings upfront. To get rid of this dilemma, you need to understand the pros and cons of buying a used or a new vehicle as per your individual requirements.
Know the Advantages of a New Car
The manufacturer’s warranty that accompanies a new car is the most tempting reason to make this investment. It ensures a few years of low-cost and hassle-free ownership. Even in the case that something goes wrong with the car, you don’t need to spend on repairs if it’s covered. Dealerships offer warranties that are often extendable up to five years.
New cars are festooned with superior mileage and the latest technologies to enhance the safety and convenience of driving. They can be customized as per your preferences in terms of paint color, wheels and bonus features. Moreover, the low-cost financing and easy loan terms make it a pragmatic choice for buyers.
Know the Disadvantages of Buying a New Car
The depreciation hitting a new car is the most disappointing reason to make this investment. The moment you drive it off the lot, your car will never be the same in terms of its value. By the end of the first year, it will accumulate a depreciation of almost 20%.
The costs of owning a new car are not just from depreciation. The sales tax is higher and it is often tied to the cost of vehicle. Also, the cost of insurance is higher for a new car because it has a high replacement cost.
Know the Advantages of a Used Car
With a used car, you don’t need to pay for the initial depreciation. Even with a one-year old model, you will see about 20% less depreciation as compared to purchasing the same vehicle in new condition. The price of a used car has the cost of depreciation already factored in it.
The affordability and lower upfront costs make it a practical choice for car buyers. Within the same budget, you can purchase a stylish crossover or a sedan that you may not have been able to afford when it was new. You can make better and informed decisions by checking the customer reviews and performance of top-selling models. Also, insurance rates are lower and sales tax is cheaper in this case.
Know the Disadvantages of a Used Car
When buying a used car, many buyers have doubts about the performance of this vehicle. You may not know about its maintenance history and it may require more repairs than you had anticipated. The overall cost of ownership of a used car may be higher due to these reasons. However, you can overcome these disadvantages by investing in a certified pre-owned vehicle. It comes with a dealer’s warranty, additional services and multiple inspections to assure complete peace of mind.
The best way to make an informed decision is to do proper research to find the best deal.