Should I buy a new Car or Used Car – The debate about the new and old car is one not likely to go anytime soon. Like debating who is the better NBA star between Kobe Bryant and Lebron James. For many years to come, the debate would always find its way into our discussion.
I think the decision about buying a new car or used car boils down entirely to budget than choice. If you put the debate across to financial experts, be rest assured that over 70% of them would root for a used car and the reason is not far-fetched.
Over the years, the demand for used cars has been on an alarming high but does this make used cars better than new cars? The answer is definitely a resounding no. Buying a new car or used car has it pros and cons and this article explains all you need to know about purchasing cars especially if you are a first time buyer.
After highlighting the advantages of both new and used cars, the call would be left for you to make. Please keep reading.
Why you should go for used Cars
Buying a used cars come with a number of benefits as you shall read shortly. I recall the first time I bought a car, it was a used car my experiencing with the car added immensely to my wealth of experience about autos. The advantages of buying used cars are as follows;
1) Less Expensive
This is the major reason why people prefer to go for used cars. Used cars are way less costly than new cars and for me, this is a standout advantage used cars have over new cars.
Even so, if you are looking to purchase damaged cars at auction prices on platform like www.copart.com, you are likely to get cars that are up to 80% cheaper than it would have cost if new.
2) Lower Insurance
Used cars have lower insurance policy than the corresponding new cars and this is another reason a financial pundits would point at when giving you advice about a new car or used car.
3) Depreciation in value
Buying a new car comes with some benefits of its own but when you consider how fast cars depreciate in value especially in the first two years, then you may need to have a rethink about new car or used car.
Depreciation in the values of cars is inevitable when you consider the fact these auto makers continually come up with new car models on a yearly basis to make existing models somewhat out of sort.
What this means is that if you buy a new car this year, in two years-time, there would be no difference with one who buys a used at a much more reduced cost.
The above reasons are the most likely reasons why car critiques prefer used cars than new one but the question one should ask is – are these reasons good enough to make you prefer used cars over new ones?
To answer the question, I have made a painstaking search to come with reasons why new cars are head and shoulder above used cars. The following points quell any confusion about buying new car or used car.
Advantages of buying New cars
One major reason why new car should be preferred over old cars any day is durability. New cars are often durability and often come with company warranty advantage. When you purchase a new car, you are rest assured that the car would serve you for a specified period of time failure of which the automakers would compensate you.
On the contrary, used cars come with no warranty and may breakdown at any point in time especially when the first owner used the car roughly.
In line with the above point, new cars are extremely reliable than used cars. When driving a new car, you are assured that parts are in the best possible condition unlike used cars which might have defective parts undetected.
According to several studies, undetected defective car parts are the leading cause of road traffic accident and you don’t want to be in such statistics when you got the fund to afford a new car.
3) Resale Value
If you have plans to catch-on on your car after some years of usage then a new car is your go to. New cars have got amazing resale value and this one major advantage new cars have over used cars.
I know a friend who bought a new car for $19,500, a Honda sedan car and after three years of use he put up the car for sale and recouped over 75% of the cost. You are certainly not likely to get such amazing deal with used cars.
New cars are known to have good resale value and this should be considered when thinking should I buy a new car or used car.
You can get amazing insurance rate for new cars depending on the model and cost of car you wish to purchase. The difference insurance between new car and used cars is not likely to be more than $50 per month.
The difference in insurance rate should not be the major determining factor why you prefer used cars over new cars. New cars have got amazing insurance rate too, this is a fact a few people know of.
5) Interest rate
The interest rate on your car loan will depend on your credit, which is why having a good credit score is so important. If you have a solid credit score, your interest rate will be lower. This becomes more important over a longer-term loan. Each dealership will negotiate differently. Don’t be afraid to walk out if the dealer tries to change the finance terms on you last minute. This is a common trick.
gas mileage is a major determining factor when evaluating a car. When you buy a new car, it comes with zero mileage and this is huge boost to your car resale value. Conversely, a used car come with varying gas mileage depending on the period of time the car was used.
If you wish to resale your car after years of usage, I think the mileage advantage of new cars over used cars speaks for itself.
7) Do you love the Smell of New cars?
I have seen many people relish the smell of new cars. Strange right? I hardly think so because I fall in this category. There are only few smells better than the smell of brand new cars.
The smell of new cars is a strange reason why new cars should be preferred over old ones. Do you love the smell of new cars? Do you have the fund to buy new a car? Why not purchase a new car to savor the smell of those beautiful leather seats.
Buying a used car might save you upfront money, but it may cost you a lot more over the long term. If you decide to buy a good used car, in my opinion you might as well spend a little more to mitigate the risks of car repair, etc. That’s the risk/reward perspective.
Buying a new car might scare you at first because the cost may appear too high to you at first but over time, you just realize it is the best deal when you consider how much you would make if you chose to resale the car.
On the contrary, used cars may cost so low at first but then you realize you most likely not to get amazing deals for used cars when you eventually decide to catch-on on the car.
In a nutshell, both new cars and used cars have their pros and cons but the idea that used cars are better than new cars as pundits would have you believe is not entirely true.