Choosing between a new and used vehicle doesn’t have to be difficult. You should always consider the pros and cons of each option, looking at how often you’ll use the car, and what you’ll use it for.
Among many reasons, you need to consider how much your vehicle will depreciate, whether you want a warranty or how much money you have to spend. There’s certainly plenty to think about before you even begin your search.
The pros of buying a used car
A used car will never depreciate as much as a new car. New cars depreciate the moment they’re driven out of a dealership, changing the most within the first three years. Conversely, if you buy used, you may be able to sell a used car for the same amount you paid for it, if it’s been well maintained.
You can often find used cars in great condition – not only from sellers but legitimately refurbished from the manufacturer – at a lower price. Cars tend to have fewer issues within the first three years, but you can usually go as far as five years old before you begin to face major issues. Of course, if you can determine that an even older car has been well maintained, then it may still be reliable.
It’s also easier to save up and buy a used car with cash, as opposed to financing it new. A used or refurbished car is cheaper than a new one. Ongoing payments on a brand-new car can be difficult to pay – you’re held in a contract that is difficult to get out of.
The cons of buying a used car
Nothing is guaranteed with a used car – the seller may not be genuine and may not disclose certain issues. Always make sure you get a vehicle contract when buying a used car – it will detail your warranty. While this varies between manufacturers and what coverage you choose, warranties usually last a minimum of three years.
You may have to pay large amounts for major repairs, especially if the seller neglected their vehicle. It may also require constant maintenance, which means going back to the repair shop often.
You may have to compromise on the look and features of the vehicle to get one with a good history or minimal mileage. A regular used car is a far better deal than a used sportscar – parts are more difficult to find over time, and repairs may be more involved.
The pros of buying a new car
As the only owner of a new car, you know exactly where the car came from. While it’s not guaranteed to run smoothly, you have a new warranty, and sometimes manufacturer support. You are also able to customize the car to your liking, with anything from premium upholstery to a paint colour of your choosing.
As cars continue to improve, new advancements are added that you can only get in the latest vehicles. Some people want these new high-tech features, and that’s only possible in a new vehicle. Not every feature is a gadget – better safety features and reduced engine noise output are two things everyone would like to have.
Though vehicles depreciate quickly, you don’t have to pay for it as you might a repair on a used car. Newer cars are expensive upfront but are less expensive to maintain and will last longer. Some may be able to afford a new vehicle and are willing to trade a higher initial cost for paying less in the following years on repairs.
The cons of buying a new car
It’s much more expensive to buy a new car, especially considering that quality refurbished cars can even be found from the manufacturer for a better deal. Used or refurbished cars come in a wider range of lower prices, while new cars have a higher starting price.
There are many factors you need to consider when buying a new or used vehicle. Make sure you know what fits your needs before you start hunting. Do you want a warranty? How much can you afford? Work through some of these, and other questions, and you’ll be on the right track to finding the vehicle best suited for you.