When it comes to shopping for a new set of wheels, there are several decisions you need to make. Besides choosing the make and model of your car, you also need to decide whether you will buy new or used. While a shiny car with zero miles and that intoxicating brand new car smell would be more appealing, your know-it-all friend advises that a second-hand car would be a better decision in the long run.
So how do you determine the right option for yourself? Examining some essential pros and cons of each will help simplify your decision-making process. They are as follows:
Pros of Buying a New Car
There are not many experiences in the world as exciting as driving a car off the lot, knowing that you are the first person to own it. The glossy shine and the distinct smell of the interior release endorphins, making for a joyous moment like none other. But apart from that, there are several significant benefits of buying a new car. It’s important to note that, you might consider Suzuki Jimny when choosing a new car for yourself.
Easier to Buy
There are fewer questions asked when buying a new vehicle. After all, what you see is what you get. Unlike used cars, you do not need to have the condition of a new car and inspect each one individually. You can be sure that it has never been involved in an accident or had any mechanical problems previously.
That means you can focus more on the design and features, having the peace of mind that you are the first owner and there are no hidden flaws about which the dealership did not warn you.
Better Safety Features
A new car will have higher safety standards than a used one. With continuous advancements in technology, new models come with the latest and improved safety features. They not only enhance passenger safety but the ease of driving as well.
Accordingly, if you purchase a new car, you are likely to benefit from up-to-date features like blind-spot monitoring, assisted parking, 360 degrees surround-view cameras, lane departure warning, or stability control. It is unlikely to find these in older, used cars.
Better Financing Options
Generally, financing a new car is much easier. It is more difficult for the lender to determine the value of a used car versus a new one. As new cars are more expensive, automotive dealers also provide attractive financing deals with low or zero interest if you have a good credit score. That may make it less costly to finance a new car over a used one. Lastly, you have a longer loan repayment period when buying a new car.
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Warranty Protection
Perhaps one of the most significant advantages of a new car is that it comes with the manufacturer’s warranty that will cover a whole host of major problems and repairs if they crop up in your first few years of ownership. In contrast, a used car will be less reliable due to its age and may require more out-of-pocket repairs not covered under warranty.
Cons of Buying a New Car
A new car may have all the bells and whistles, but there are a few things that go against it.
Costs More
Buying a new car comes hard on the wallet as the initial cost is more than a used car. If you are financing the purchase, you are most likely to borrow more and end up paying more interest in the long run.
Quicker Depreciation
As soon as you drive a new car off the lot, its value drops significantly, which could be up to 20% of the total cost. From there, it continues to lose its value during the first few years of ownership. Ultimately, a new car would have lost 60% of its purchase price after the five-year mark.
Higher Insurance
New cars are typically more expensive to insure than their older counterparts as their costs to repair or replacement value if stolen are higher.
Pros of Buying a Used Car
While pre-owned cars may not be as appealing as their brand new counterparts, they present some attractive benefits to nationwide classic car buyer.
Costs Less
While it may not have the curb appeal of a new car, it is crucial to remember that cars are not an investment but an asset that depreciates over time. With the previous owner taking the biggest depreciation hit on the car in the initial years of its purchase, you can avoid the high initial cost of buying a new car.
Accordingly, buying a used car can give you excellent value for money, more so if you can find a late model in good condition. By maintaining it, you may even sell it off at roughly the same price at which you purchased it a few years down the line.
Lower Insurance Rates
Insurance rates are usually lower on a used car compared to a new one and continue to decrease as the car ages. The prime reason is that replacing an older model does not cost as much as replacing a new car. Correspondingly, its registration fees will be lower too. By spending less on insurance, you can reduce the total costs associated with owning a car and save a fair bit of cash.
Cons of Buying a Used Car
On the flip side, purchasing a used car inevitably comes with a few disadvantages, which are as follows:
Less Reliable
When buying a pre-owned car, it stands to reason that it might have reliability issues due to its age. You can not be sure how the previous owner treated the car and what problems are compelling them to sell it. The older the car is, the more money you will likely spend on maintenance and repairs, especially if it is not covered under the manufacturer’s warranty.
Accordingly, a vehicle history report is vital to avoid buying a used car with poor history or condition.
Limited Options
Buying a used car with a good history or mileage typically renders that you compromise on preferences like colors, features, and other accessories you may desire. The options when shopping for a used car are limited. You must be more flexible when shopping for it.
Ultimately, the best method to determine whether to buy a new or used car is by thoroughly researching what models align with your wants and needs and the budget you will be most comfortable with several years down the road.
