Is It Better To Get A Used Or New Car?
Deciding between a new or used vehicle may seem like an easy choice at first but after a little bit of consideration, it becomes clear that it’s quite the opposite which is no surprise as countless car buyers are faced with this same question every single year.
Do you opt for that new car smell knowing it will cost you, or simply buy a fairly used vehicle and save some extra cash? In actuality, deciding between these two options is more than just finances, although it remains an essential part of the equation.
Buying a new car will come with an average monthly cost of $660, while opting for a used car should be around $400. If you’re working on a budget and would prefer to save as much as possible on the initial purchase, your best alternative would be a used car.
However, you’ll have to factor in the costs of repairs as there’s a very good chance the car will need some tweaking not too long after you purchase it. Below is everything you need to know to allow you to make an informed decision.
Important Factors To Consider Before Buying A New Or Used Car
Choosing between a certified pre-owned car and a brand-new car depends on your budget, needs, and taste. Here are some things to go by when choosing between a new or used car.
1. Features And Design
Before buying a car, you’ll need to check if your prospective purchase features modernized safety features and the latest technological systems.
In addition to this, you get to choose whatever color you like and a vehicle with an interior finish that matches your taste. Note that it might take a while before you find a car that checks each box.
Buying used cars comes with a few financial perks, such as lesser insurance and dealership fees, and depending on the brand of the car, the purchase price will also be significantly less than buying a brand-new vehicle
3. Maintenance Needs
A new car won’t require repairs for a long time and will also cost less to maintain. The opposite is the case for a fairly used vehicle. While they are cheaper, they tend to need major repairs at some point. However, this shouldn’t be a deal breaker as you’ll find many certified pre-owned cars still in good condition.
Things To Consider Before Getting A Shiny New Car
Buying new cars from car dealers is not the best way to save money, although you’ll be able to save a lot on maintenance and will also get a car with advanced technology. The following are some other benefits you stand to gain if you buy a new car:
Advantages Of Buying A New Car
There are several things you stand to gain if you buy a new car from a car dealership besides getting to pick from multiple options with the latest technology and extensive warranty coverage. Some of such benefits are listed below:
One significant benefit of buying new cars is that you can pick any color you like and request add-ons that match your preference. In addition to this, new cars often come with bumper-to-bumper coverage and have better fuel efficiency.
2. New Technology
This is one practical advantage of a new car purchase. Not only do you stand to get a vehicle with a modern technological system, but you’ll also get advanced safety features.
3. Great Interest Rates
This is one major benefit new car buyers enjoy. Your odds of getting a better interest rate are considerably higher with a new car compared to a used one. Some dealerships offer amazing car deals and auto car loan packages for clients to pay in installments.
Disadvantages Of Purchasing A New Car
While buying a new car comes with some worthwhile advantages, a few drawbacks come with it, which you must consider before making your choice.
Buying a new car will cost you thousands of dollars. Sure, you get the latest and advanced features of a modern car, but this is not a decision you want to make in a hurry as it can put a huge dent in your finances even if you opt for the dealership’s new car loans.
2. Vehicle Depreciation
Cars depreciate over time, whether it’s a new or used car. Since a new car is bound to depreciate as the days go by, this spells a decrease in resale value. Even a relatively short period of use can lead to drastic depreciation rates.
3. Higher Car Insurance Rates
It costs a lot more to insure a newly purchased car than a used one due to its higher value and chances of theft. While buying from a dealer’s lot means you can test drive multiple vehicles and compare costs, you may need full insurance coverage for a vehicle purchase in addition to the monthly payment and other vehicle costs.
Considerations Before Buying Certified Pre-Owned Vehicles
A used vehicle won’t depreciate as quickly as a new one and will come at an affordable price, although there are several drawbacks to note.
Advantages Of Buying A Used Car
By purchasing a used vehicle, you’ll be able to save a lot on insurance, monthly payments, and other fees. Another advantage of a used car is that it’ll depreciate much slower than a new one. The following are the key benefits of a used car:
One core benefit of used vehicles is that they are generally less expensive than new ones. Buying a model you have in mind but a fairly used one can save you a lot of cash, although you need to get a vehicle history report before making a decision. You may be allowed to pay in installments if you don’t have enough to finance your used car purchase. However, you should note that used car loans often come with high-interest rates.
2. Lower Insurance Costs
Unlike new vehicles with higher insurance costs, used cars tend to come with lesser insurance rates, sales taxes, and tilting charges. Opting for one will help you save on each of these costs.
3. Slower Depreciation
A pre-owned vehicle won’t depreciate as quickly as a brand-new one, regardless of whether it’s not the same car brand or if it’s the same model.
Disadvantages Of Buying A Used Car
There’s a chance you won’t get everything you require in a vehicle if you choose to buy a used one. You may have to settle for only a few of your requirements, at least until you get a new car in the future.
1. You’ll Have To Make Compromises
Since the car market is very competitive at the moment, you may not get all the features you require in a car.
2. Increased Maintenance Costs
Even if the used vehicle happens to be in good condition, there’s a possibility that it’ll need repairs after a short time.
Which One Should You Go For?
Choosing between a used car and a new one depends on your budget, whether you’re willing to make do with a used car until you can afford a new and more expensive one, and your view on depreciation or how determined you are to get a car with certain modern features.
Both new and used cars have positive and negative aspects. If you have a car in mind and a budget to cover the costs, you might as well go for it. If you need a car to get around temporarily, you can also make do with a used car until you can afford a new one.