A car purchase is serious, primarily because for most people, a vehicle is their most significant single investment next to a house. With that in mind, it is essential to weigh your options properly. Before you visit the nearest auto or vehicle dealership, decide between buying a used car and a brand-new one.
Here is some helpful information to help you make that decision.
Brand-New Car
A brand-new car enjoys more desirability among most buyers, for obvious reasons. It is easier to find a vehicle equipped with the latest technologies if it is just rolling off the manufacturing facility. It also has the latest in aerodynamics and good looks. You have your pick of the most convenient, efficient, and environment-friendly rides.
When a car is new, it comes with a warranty of at least three years. You can expect it to be problem-free during most of those years if you give it reasonable care. Regular maintenance is also cheaper. Dealerships often sell new cars at lower interest rates. You cannot ignore the prestige that also comes with most brand-new vehicles.
There are a few disadvantages that come with buying brand-new, however. For example, depending on the model, it is likely to cost you more than a used vehicle. A new car also loses most of its value in the first three years after it rolls off the dealership.
But do not look at these disadvantages without considering the pros mentioned above because, for most brand-new car fans, the positives outweigh the possible drawbacks.
Pro-tip: If you are planning to keep your car for as long as possible, a brand-new unit is probably your best bet, as you do not have to worry about depreciation.
Used Car
A used car is an excellent option for many people too. First, you do not have to worry about the depreciation of a used car that is past its first three years; as a matter of fact, that is precisely what works to your advantage, because now the car is more affordable.
You can probably save enough to pay cash for the used car you want. In case you decide to resell your used car in the next few years, you can do so for almost the same price you bought it for. Many financial institutions offer great deals for financing used models. Insurance is lower for most used vehicles, as well.
The most obvious disadvantage of buying a used car is the risk you take, as you cannot be sure if the vehicle will still be as durable and problem-free. That said, newer models are a lot more durable than their predecessors from a few decades ago. Some 10-year-old models are as reliable today as they were when they were new.
Pro-tip: When you are young and buying your first car, insurance costs are usually higher. Buying used means you will be offsetting that high insurance with the lower policies available for used vehicles.
Buying the Car
Now that you have a good idea about the pros and cons of purchasing either a used car or a brand-new one, you can make a better decision that will work for you. Here’s some more advice, though: if you cannot finish paying for the car within three years, it is probably a bad idea to buy it.
This is because chances are you cannot afford it in the first place. Buy a vehicle that is within your budget – new or used – and you should be fine.