Everyone who already has an old vehicle desires to do away with it for a new one. When it comes to buying a new or used car, there are lots of choices for you to decide when buying a car; be it a new car or a used one.
A clean and shiny car looks appealing to you because you might have experienced its benefits or probably heard about it special features from a friend.
While some people argue that it is advisable to get a brand new car, some others have opined that it is wiser to get a used car. Choosing whether to buy a new car or stick with a used one could be a tough decision for one to make.
However, in this article, we would explore both options of buying new and used vehicles and this will help you immensely in picking the car that is suitable for you.
New cars are naturally appealing to people; this is why it would take a resolved person to stay determined in picking a used car over a new one. Buying a new car comes with so many positive attributes.
Most times, it gives you the recognition, and respect which you expect to receive from your friends and neighbours. The interior of a new car is quite attractive and appealing for people to desire it.
On the other hand, used cars or ‘pre-owned vehicles’ lack the glamour which is attached to new cars. Regardless of this, used cars are difficult to beat when it comes to the economic and efficient aspect of buying cars.
It is important to note that buying a car is not really an investment because vehicles will eventually depreciate in the course of time.
Financial Analyst Review On New Or Used Car
A lot of financial consultants advise prospective car owners never to buy a new car. A car sales website (Edmunds.com) stated that a brand new car loses about 10% of its value from the minute it is driven off to another location.
Also, they opined that the new car will lose additional 10% of its value after a year of driving. If you should buy a used car or a late-model car, you can get practically the same vehicle for 20% less.
This has raised some arguments and controversies as some people believe that a used car may not be cheaper at all times than a new car in the long run. But these assumptions depend on certain factors, such as the age of the car, the manner it is being driven, the rigidity of the car and the amount of time you intend to keep it if purchased.
There are so many factors involved in buying a car, whether new or used, but a common mistake made by car buyers is that they take cost as the sole factor to consider when buying a carThe truth is that you should never the length of your pocket as the only factor before buying a car. We would carefully look at some factors to help you make a concrete decision on whether to choose a used or a new car.
Factors To Consider When Buying A New Car Or Used Car
- Reliability: New cars have a low maintenance cost because new cars do not necessarily need much money to maintain because all its parts and accessories are new and they do not require any routine maintenance for the first several miles covered by the vehicle. Such a vehicle can run smoothly on roads with an occasional oil change. Pricey items such as a battery, a new exhaust system, tires or brakes aren’t likely to be needed for the car for a period of three years, at least.
- Warranty: However, new cars can develop some technical problems unexpectedly like a starter that fails without warning. If such incident happens, the new car owner is protected because he/she is covered by a warranty. The car owner will not need to pay for anything except for inexpensive and routine care (such as oil changes) because the factory warranty covers the cost of some major repairs for a few years.
- Insurance Costs: The upfront cost of buying a new car makes up a cost of owning the vehicle. You will still have to pay for auto maintenance, gas, and car insurance. About 10% of all the money spent on your car for a period of five years goes into the accounts of your insurance company. You might have heard that it is more expensive to insure new cares than older ones. This is quite true and it is one of the many factors involved when buying new or used cars.
- Purchase Cost: This is the biggest argument in favor of buying a used car. Used cars are preferred over new cars for an obvious reason, which is its cheapness and affordability. Most new cars depreciate after two to four years on the roads, and the value of such vehicle decreases year after year. With that being said, let’s see the positive and negative sides of buying a new car.
Advantages Of Buying A New Car
- Buying a new car comes with a warranty from the car manufacturer. This is the first advantage to be enjoyed if you should purchase a new car. Many new cars experience little repairs due to a few faults which may occur in the first few years.
- Another advantage of buying a new car over a used one is that new cars are equipped with the best technology which would give you a good driving experience. You can buy new cars with better gas mileage and lower emissions. You may decide to buy a hybrid and reduce the finances to spend transportation each month.
- Also, new cars are most likely to offer the latest safety features and highest fuel efficiency standards such as side-curtain airbags and structural reinforcements.
- The dealer or manufacturer may offer to lessen the amount of interest which you get to pay over the life of the loan. This makes it cheaper and less expensive to purchase a new car than a used car.
Disadvantages Of Buying A New Car
- The biggest disadvantage of buying a new car over a used one is that you get to lose your money as soon as you hit the road. A new car depreciates in the first 3 years of use. In essence, this means that you are embezzling thousands of dollars which you may never recover.
- Another drawback is that if you buy a brand new car model, the car may become obsolete in a year or two when the manufacturer makes an upgrade or alters the design of the model which you bought.
- New cars come with higher insurance costs which are exorbitant compared to the used models. Buying a brand new car shows that you’re both incurring higher debts upon yourself. The more you pile up debts in your name, the quicker you get to lose your value.
Advantages of Buying a Used Car
- Buying a used car allows you to own a car of your own even if you are low on cash. Even when you do not have enough money to purchase a new car at a standard rate, you can still take some time to save up a few cash to get a used car.
- The insurance rates may be lower on a used car than a new one (depending on the model of the car). However, most used cars can be insured with any auto insurance fee for a low rate as compared to the new ones.
- Buying a used car gives you the opportunity to get an ideal car; especially if you are running on a low budget. You can get a used car or a late-model car which is priced below half the cost of a new car.
- Another advantage is that you allow someone else to bear the loss of depreciation rather than taking it yourself. Also, you may be able to sell the same car for nearly the same amount you purchased it in the next few years.
Disadvantages Of Buying A Used Car
- When shopping for a used vehicle, you’ll need to be more patient and more flexible as you hunt for a car. Most times, you may have to compromise on the exterior of the car so as to get a car with better history and mileage.
- A used car may not be as reliable as a new car. Since you do not know how the car was managed and used by the previous owner, there is always that fear that you are purchasing the problems of someone else. When this is the case, you will become a frequent customer to mechanics, and auto repair service locations to fix the car faults. However, even if such car is perfectly sound, you are advised to perform some servicing, and car maintenance checkups on it such as getting new tires, new brakes, engine oil, radiator and transmission flushes etc.
Conclusion On Buying A New Or Used
There is no perfect option because everyone will need to make a decision for themselves and pick the best option which will suit them. Just as we hinted in the introduction, buying a car (either a new or used) should be based on certain factors other than cash and car design.
No matter what you pick or decide, ensure that you can afford its maintenance . Also, make sure the vehicle is sound and reliable, so as not to cause additional problems for you in the long run.
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