Should You Buy a New or Used Car?

The cost of buying a new car is on the high side. But after making the one-time investment on the car; you are going to spend little on overhead costs. When you opt for a used car, you will compromise on features and be prepared to spend more on overhead costs on maintenance.

We are going to consider the benefits that come with the purchase of each of the cars and it will now be left for our readers to make up their mind on their line of action.

Benefits of used cars

When you buy a used car, one of the chief benefits lies in the fact that you are going to save money. Aside from this obvious economic advantage, there are other benefits that we are going to consider here.

Depreciation

Immediately the new car leaves the dealer’s shop, it will depreciate by about 20%. If you want to sell the car after a few months, the value will be a problem. But where you intend to use it for a long time, you might have no issues to worry about. When you buy a used car, the depreciation level is rather very slow. After the first year, the depreciation of the used car goes to about 9% to 12% for some models. Here, it is very clear that the depreciation level of the used car is slower when compared to the new car.

Lower cost

We have mentioned this in the opening lines; emphasizing on it is never out of place because it is the big one. It is pretty easy to get used vehicles that are 1-2 years old. When you invest in such, you are going to save about 20% on the cost used in buying the new vehicle. When you invest in this category of cars; you are going to pay less on insurance premium because they attract less when compared to the new cars. The interest rates on used cars are another factor. You are going to pay less when you invest in these cars.

It is a good option for people who need cars on a daily basis, but not for showing the status. Like for college students who spend a lot of money on dorms, assignments help from My Paper Done and basic needs and have not much time for earning some. Also it’s a good option for moms with kids who spend days caring about them and not working. Or, maybe, you need a car in a hurry after an accident with a previous one and you can’t pay more for a new one.

Large down payment

Where you can put down a large bulk of money on the initial purchase of the used car, you are going to get approval for a lower-cost used car. This is not the case if you do the same in your desire to get a new car.

Benefits of new cars

If you have decided to invest in buying a new car, the following benefits will come with your investment.

Less legwork

The steps in buying a used car and an old one are the same. The starting point is your budget. When you are involved in buying a used car, there are several steps to be taking and several issues to worry about. You need to understand the history of the used car to make assurances doubly sure before you invest in any of the models. With a new car, all that is required is to walk in straight to the car dealer once you are armed with your budget. There is less legwork here.

Fewer worries on repairs and maintenance

Cars that leave the factory are often in perfect condition. You are going to have a decent warranty that covers types of common repairs. When you buy a used car, you are not going to get a warranty on maintenance insurance. Aside from service costs that involve changing the engine oil at regular intervals, an investment in new cars will not produce issues that involve capital expenditure.

Comprehensive warranty coverage

When you invest in a new car, you are sure of getting the warranty that will give you expected peace of mind. You are going to get bumper to bumper warranty on each purchase as well as roadside maintenance.
This is never the case when you are investing in a used car.

Customization and latest technology

One of the advantages of buying a new car which is not possible with an investment in a used car is customization. You can walk to the dealer and dictate terms that relate to the color and some other features that you wanted to be included in the car and you are going to have your way. If as much as you have the extras to pay for the customization efforts, you are going to achieve your heart’s desires with an investment in the new car.

You will only get the introduction of the latest technology in your car if you put an order for a new car. This cannot be achieved if you invest in a used car.

Financial offers

We shall on the benefits that come with an investment in new cars with the offer of financial benefits that you are going to get only through investment in new cars. If you target promotional periods by dealers of new cars, you are going to have some benefits that are not open to those that invest in used cars. There are offers of cashback and 0% financing that you can exploit.

The implication of the offers lies in the fact that the upfront costs will be lowered and it will make the car more affordable in the long run. There are no such incentives for those that are considering the option of a used car. You must have high credit scores to qualify for the offer

We have covered the benefits that come with an investment in the two options above. If you invest in having an understanding of the issues that we have discussed above, it will be easy to make the right decision based on the facts that we have placed before you.

Final thoughts

There are pros and cons in buying either a used car or a brand new one. We have covered a lot of grounds needed to clarify the issues on a new or used car. The final decision now boils down to your preference. The financial capacity that you can boast of is also a huge factor that will determine which direction to go.