Buying a car has its challenges. Besides settling on the model or brand you will buy, you also have to consider whether to buy a new car or a used one. Whichever choice you make will significantly impact you months or years down the line. You should conduct proper research on what both cars can offer you. Both used and new cars have their advantages and disadvantages. As such, you will need to weigh if the advantages of one outweigh those of another then make the purchase.
Buying new cars
Buying new cars has its benefits. Some of them include:
1. You enjoy a full warranty. New Cars can have a warranty of up to 10 years, depending on the car you buy. When you buy a new car, you enjoy all this warranty, unlike buying a used car that may have an expired warranty.
2. There is a higher chance of getting up-to-date technology. This is because you can get a newly released car with updated technology absent in used cars.
3. New cars have wider financing options in dealerships compared to used ones. This is because they aim at enticing new buyers.
4. Buying a used car is less stressful because you do not need to inspect the car’s state and ask about its history.
Some of the disadvantages of these cars include:
1. New cars undergo up to 40% depreciation within the first year of buy alone. This means that you will sell the car for a significantly lower price than you bought it because of this depreciation.
2. New cars require higher insurance premiums because replacement costs are high.
3. New cars are more expensive. According to Kelly Blue Book (KBB), a new car averagely costs $37,000, which is roughly $17,000 higher than the average cost of a used one.
Buying used cars
The benefits of used cars are many compared to those of new cars. When you buy a new car, you enjoy benefits such as:
1. Used cars are cheaper; they have an average cost of $20,000. They also have a lower debt in the long run than new cars because of low insurance premiums. You will also spend little on maintaining the used car than you would on a new one. However, this only applies to cars maintained correctly.
2. Used cars are associated with a lower depreciation hit than new cars because the car’s initial owner incurred most of the depreciation. The older the car is, the smaller the depreciation you will incur.
3. You can buy a higher model of a used car than you would of a new car. This is because used cars are cheaper. Buying used cars in Hollywood fl is less stressful because you do not need to inspect the car’s state and ask about its history.
4. You will get a strong resale value when you buy a used car. You can sell the car for the same price you bought it or a little bit less.
The biggest disadvantage involved with buying a used car is that it may not be reliable. If the earlier owner did not maintain the car well, you might end up spending more to repair it. You are also limited to only what is available in terms of the colors and features.
Should I buy a new or used car?
Both cars have their advantages and disadvantages. Carefully weigh your options and see which car would suit you. A used car is a better option if your budget is tight. This is because they are less costly. However, if your mindset is leaning on buying a used car, consider buying a certified pre-owned car. These cars are a nice blend of used and new cars. They are used cars that have undergone a full inspection by the manufacturer before they reach you. During the inspection, these cars undergo refurbishment to fix any problems. These cars also have a warranty and features like roadside assistance, making them no different from new cars.
