Buying a car can be a stressful process. There are many aspects to a car that you must look at before you purchase. What is the car’s gas mileage? Safety features? Is the brand reliable? However, the biggest question people ask themselves is, “Should I buy my car new or used?” This is a question that can be solved by looking into a series of factors.
Can You Afford to Maintain a Used Car?
It’s natural that your first thought may go towards buying a used car. After all, a used car can be thousands of dollars cheaper than one that’s new – the less money spent, the better off financially you’ll be. However, what many people do not put into consideration is the fact that used cars are much more likely to need maintenance and repair.
With a used car, you’re taking a gamble on when it will be needing maintenance. While you may be able to go years without, you could also need maintenance within a few months. It’s important that you look into your finances before making the purchase. No matter how well maintained the car is, after 30,000+ miles some of the parts are going to wear out and need replacing.
Depreciation
When buying a new car, it’s important that you know that as soon as you drive it off the lot, the value is going to depreciate. You have to ask yourself – why are letting the depreciation effect you? For example, if the new car you just bought depreciates by $6,000 once it’s purchased, it’s like you’re just throwing that $6,000 away. You have to ask yourself, why not just buy the car used? If you buy that same car used, not only are you saving money but you are also avoiding the major depreciation that the car will see. If you can find the same model used, it’s worth looking into!
Your Credit
Lastly, when deciding whether to buy a new or used car it’s important that you look at your credit score before you make that decision. Your credit can decide whether or not you can even get a new car. If you’re behind on your credit, then you will have trouble getting some of the incentives that dealerships use to sell their stock. For example, many dealers will offer rebates, cash incentives and discounted financing. If your credit score is in bad shape, these incentives won’t be offered to you and you may be better of purchasing a used car.
Deciding between a new or used car can be a difficult decision. However, by looking at the factors above, that decision can be made a lot easier. It’s important that the car you buy can last you a while and be efficient with your money. This can make you a happy driver!
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