The dreadful decision in car buying: new or used. There are advantages and disadvantages to both options, and it is important that people consider them all before finalizing their purchase. Cars are not as easy to sell as they are to buy, and they cannot be returned after 30 days if you don’t like it. New cars are more expensive, but the quality is better than that of a used car. A used car is more affordable, but you may have to take it to a mechanic to get some things fixed. Ultimately, the decision will be made based on your financial situation.
NEW CAR
The Good
The positive thing about purchasing a brand new car is that everything is in perfect working condition. Many companies that sell cars provide maintenance discounts for their customers. They also provide a warranty that could last for years or until the car reaches a certain mileage point. Roadside assistance and the pride in driving a new car are other positive aspects too.
The Bad
New cars depreciate by 40 percent within three years, meaning that it loses its value. Purchasing a new car will also mean monthly car payments for the next five years and increased insurance rates. Registration, license fees and sales tax will also be higher than a used car purchase.
USED CAR
The Good
Used cars outsell new cars 3 to 1 because they are much more affordable. Even with maintenance costs, the overall cost does not add up to a new car’s purchase price. Registration, license and insurance premiums are going to be lower than a new car as well. The used car has also lost its value so there is not much worry when it comes to selling it back because you might be able to get back the same amount you bought it for, depending on condition and mileage of course. Some used cars are almost like new but more affordable because their value has already been lost after a few years.
The Bad
Used cars may require tune ups and frequent visits to the mechanic. Manufacturer’s warranties do not come with the purchase of many used cars and therefore the owner is financially responsible for any problems that go wrong. They are also responsible for maintaining their vehicle by themselves. Some new car dealerships will remind their new car customers on free oil changes or such.