Buying a new car or used car in 2020 should be greatly determined by your budget. New cars offer so much comfort and luxury at exorbitant prices.
But, data from Motor manufacturers and traders indicate that sales of new cars bounced in recent times. In fact, most financial experts readily advise people to opt for used cars.
The debate on buying a new car or used car has been recurrent for years and there may be no end to it soon. Aside from a few considerations explained in detail in this article, buying a new car seems to be the best choice.
While your choice is greatly determined by your budget, take a quick glance at the table of contents below to get insight on why you should opt for a used car.
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 its pros and cons and this article explains all you need to know about purchasing cars especially if you are a first-time buyer. In addition, this article offers a review based on the users’ experience.
Advantages of Buying a Used Car
If you are stuck with making a decision between buying a used car and a new car, these advantages of buying a used car could influence your decision. 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 less expensive than new cars. Mostly, this explains why people opt for used cars.
Even so, if you are looking to purchase damaged cars at auction prices on platforms like www.copart.com, you are likely to get cars that are up to 80% cheaper than it would have cost if new.
Being less expensive is not the only reason to consider buying a used car. You will find more advantages while reading.
2) Lower Insurance
Used cars have lower insurance policy than the corresponding new cars. This is another reason financial pundits would point at when giving you advice about a new car or used car.
3) You Can Buy a Better Car
Depending on your budget, buying used cars allows you to afford nice cars than you would have if you are buying new cars.
The amount you spend to bus a Mercedez-Benz as a used car may probably be only to get only a Buick. So, buying a used car allows you to settle for luxury you may not be able to afford immediately.
The price of a used car is largely dependent on its mileage and condition. If you’re willing to buy a car with higher miles, or one that’s not quite in perfect condition, you can get more car for your money.
4) You’ll Know What Problems to Avoid
You can easily analyze what a used car does not appreciate and avoid it from the onset. Based on the reliability record, which culminates the experiences of previous owners of the used car, it’s easier to know what problems to avoid.
Also, you can access the J.D Power reliability data which culminates problems reported in the third year of ownership. If the used car is less than three years, you can combine historical reliability and a new car quality data.
In addition, you can easily explore owners’ forums online to see the issues current owners of the used car are facing.
From trends, you can deduce if the car has issues like early transmission failures, cost of major repairs, or trouble using certain features.
Advantages of Buying New cars
One major reason why buying new cars should be preferred to old cars any day is durability. New cars are durable and often come with company warranty advantage.
When you purchase a new car, you 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 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 overused 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 considering to buy a new car or used car.
You can get an amazing insurance rate for new cars depending on the model and cost of the car you wish to purchase. The difference in insurance between a new car and a used car 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 a 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 the 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, 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.
Should I buy a Used Car or New Car? Review
Buying new cars is outright luxurious and gives a sense of ownership. But, you should take a deep breath, consider car depreciation, and let it sink deep in your thoughts.
Once you purchase a car, it looses 20% of its value. This simply means if you are reselling your new car after even 2 hours of purchasing it, you may not sell it the same amount you bought.
Car depreciation sucks money off your wallet and so, it is not entirely a worthy investment. You should consider new cars if you love luxury and can comfortably afford what you really desire in a car.
If not, opting for a used car will allow you to shop more luxurious cars and the depreciation rate is definitely not as speedily as the value of new cars. Having to sell a car you bought at $30,000 for less than $15,000 after three years, its a big hit.
However, you can choose to opt for a new car if you can afford the luxury. An extra $10, 000 means nothing to you? Then, get a new car, don’t just regret it!
In a nutshell, both new cars and used cars have their pros and cons. So, what you should buy will greatly determined by your budget.
If your budget is not good enough to buy you a comfy new car, you should consider the advantages of buying a used car. Well, the ball is in your court, you decide to score a goal and save money or play it over the net and lose money.