Are you looking for a new car? Confused about whether you should invest in a new or used car? We know that this can be a tough decision to make. That’s why we’ve compiled a guide of the pros and cons of buying a new car v/s an old car.
New Cars
From that new-car smell to the clean interiors and the shiny paint, there’s no denying the appeal of a brand new car. In today’s consumer culture, purchasing a new car is a status symbol.
Positives:
It’s new! Almost all new cars have good reliability records. If anything goes wrong, it can be covered by the warranty. If you buy a new car, you won’t have to worry about how the vehicle was treated before you bought it.
Several new cars also come with roadside assistance, which saves you the cost of paying any towing expenses if you’re stuck on the highway and provides peace of mind. New cars also have the latest safety features like side-curtain airbags, structural reinforcements, rearview cameras, and highest fuel efficiency standards.
Negatives:
Purchasing a new car might be hard on the wallet. You’ll have to pay more upfront and they also depreciate in terms of their value more quickly.
When you buy a new car from any dealer, you pay its full retail price. However, once you own the car, it is worth its wholesale price. If you want to sell your car back, the dealer would pay you the wholesale price.
This means that when you buy a new car, you incur higher debt and lose value more quickly than you would if you had purchased a used car.The insurance costs of new cars are also higher.
Used cars
While pre-owned cars lack the mystique of new vehicles, when it comes to practical financial reality, they’re hard to beat. Buying a low-mile, newer model could be a great bargain.
Positives:
Buying used allows you the opportunity to get the best car for your money. In fact, you might even be able to find a great luxury car at an affordable price. If you buy a certified pre-owned car, you can get strong warranties.
For practical purposes, newer-model, low mileage used cars are as good as new. You might not even notice the difference between a new vehicle and a used car if you trade your car every few years.
You can also reduce your acquisition cost dramatically if you are handy with a wrench and don’t mind using a car that needs a little attention and time.
Negatives:
Even with the warranties offered, some used cars might come with unknowns. You might not know why the car was traded in and how it was treated by its last owner. That’s when the fear of buying someone else’s problem sets in. While the car is perfectly good, you would need to perform maintenance checks sooner than on a new vehicle. This maintenance includes items like new brakes, new tires, and radiator, and transmission flushes.
It might also be challenging to find a used car with the exact features and options you desire.
Buying a car is a big financial decision. Make sure that you do your research before making your next purchase.