Buying a car is the second largest expense after a house in most people’s life. The decision on whether to purchase a new or used car can be a challenging one. A new car is brought directly from a car dealership while a used car is bought from a private owner.
Do you want the pride of been the first owner of your brand new car or buy a slightly-used car that is still reliable and more affordable? Well, this decision cannot be clearly made without having an overview of the pros and cons of either buying a new or used car. We have made this work easier for you by clearly outlining the advantages and disadvantages of either of the purchase.
Buying a New Car
Advantages of buying a new car
1. It is not used. A new car has not been in any accidents, doesn’t spell funny, no wear or tear and most importantly you are probably the first person to drive it.
2. Freedom of choice- when buying a new car, you can consider a wide variety of options to choose the vehicle you want and one that is within your price limit. If you are looking for a certain wheel design, model or a car with unique features, color a new car will be your best shot
3. Latest features- with a new car, you can order a car with the features and options you want. New cars have new features such as multimedia and navigation interfaces already installed. The equipment in the vehicle are in good shape, and less servicing is required
4. Good warranty- New cars have warranty coverage for three years, five years or ten years depending on the type of car. This bumper-to-bumper warranty provides protection and peace of mind for years. With a warranty, if anything goes wrong with the car, it is the manufacturer’s responsibility to fix it.
5. Banks offer low financing rates on new cars than used cars because new cars have not started depreciating like used cars.
Disadvantages of buying a new car
1. More expensive than buying a used car
2. Depreciation kicks in instantly after purchase
3. New cars come with high tax and insurance costs
4. You need to pay registration fees
5. Optional features add to the car’s price
Buying a Used Car
Pros of Buying a Used Car
1. Low insurance costs
2. Lower price and better overall value
3. Lower depreciation rate. Cars mostly depreciate faster during the first three years and by the time you buy a used car depreciation will be at a lower rate.
4. No taxes should be paid on the purchase.
5. You can still benefit from the warranty if it has not expired
6. You have a wider choice of vehicle
Cons of Buying a Used Car
1. Reduced choice when it comes to styles, color, and preferred options
2. Increased maintenance costs especially if the warranty has expired
3. Used cars may have mechanical problems that the buyer doesn’t know of.
With a list of pros and cons of either buying a new or used car, you can easily make your decision. Buying a new or used car is a matter of your personal preference, desires and financial capabilities.