Buying Used Cars vs New Cars

Everything new subsequently becomes old, from the preceding, that old car in the garage was once new. When your old car breaks down finally at the side of the road, you are faced with the reality of choosing whether to get a new car or a pre-owned wheel. On the surface, a car fresh off the lot would be more appealing, but you will also probably get recommendations from car enthusiasts that buying a used one is the better choice in the long haul. This post will guide you through the advantages and disadvantages of each option.

KEY FEATURES ABOUT NEW AND USED CARS
● New cars are built with all the most recent safety features. They are generally more durable, and you will feel safer because the car is at its strongest point. However, they do come with a higher cost and high insurance fees. 
● Used cars are favored because they are cheaper. As a result, their insurance fees are much less.
● In your decision-making process, it is wise to consider not just the newness or how old the car is but the subsequent expenditures such as gas, insurance, repairs, and maintenance.

Advantages of Acquiring a New Car
1. It is appealing
From the new car smell to the polished shiny paint, the leather interior, the incessant admiration by onlookers, and the just off the curb feels, a new car screams glamor and appeal. A new car is cosmetic, and it announces the status of its driver. Great looks aside, a new car also has other advantages.
2. Trustworthiness and manufacturer’s warranty
New cars come with warranty protection and trustworthiness that the vehicle is at its optimal stage and the assurance that if anything does go wrong, its manufacturer would fix it or replace it for a better working model. When you buy a car new, you are not bothered with its history, such as how it was used before it came into your possession.
3. Roadside Assistance
Some new cars come with the advantage of free roadside assistance. This feature will save a car owner from the cost of paying towing fees if the newly purchased car breaks down.
4. All Recent Features are Included in New Cars
New cars are made to satisfy the latest fuel efficiency standards and up-to-date safety features. Aside from this, new cars have features like luxury cushioned seat warmers, remote starts, Bluetooth connectivity, front and back parking cameras, assisted driving, and so on.
5. Financing Options and Packages
Many manufacturers and new car dealerships give their patrons financing programs with low or no interest when they have good credit. This will make financing the purchase of a new car easier and less costly than a used one.

Disadvantages of Acquiring a New Car
On the flip side, certain things make buying a new car less appealing.
1. New Cars are Costly
Acquiring a new car is a huge financial obligation. If you are planning on financing the purchase with an auto loan, you will end up borrowing and spending more than you would for a used car. Aside from this, the interest payable will be exhibited over time. End up paying more interest over time.
2. Depreciation Factor
It is a trite principle in the automobile business that new cars depreciate faster than used vehicles. A car will gradually lose the highest value point in the first few years of purchasing. A huge chunk of appreciation happens immediately after purchase, the moment it is driven off the lot. It has been estimated that about 20% of the car’s value goes when driven off the lot. As soon as you’re off the lot, the car’s worth will be wholesale, no longer retail price. Hence, it is at that amount that the car dealership would offer to pay if you decide to resell it back to them.
3. High Insurance Fees
New cars have higher auto insurance costs than pre-owned vehicles because their alternate prices are higher.
As earlier stated, a car will not stay new forever. In a week, a month, or a year, depending on maintenance, the car will look just like every regular car, but the monthly payments might still tie you down for a longer time. At that point, you might even wish you had gotten a used car. Here are the advantages of choosing a used car.

Advantages of Purchasing a Used Car
Marketers have coined the word pre-owned cars to replace the phrase “used car,” all to make them more appealing. However, these used vehicles sell themselves due to the following advantages.
1. Lower prices.
Used cars are less expensive than new ones because, at the point of their sale, much of their depreciation has already happened. The original owner has already paid that price. When you purchase a used car, you can get more cars at a new car rate.
2. Warranties Come with Certified Used Cars.
Used vehicles that are certified have their warranty protection still available. The warranties would normally cover the most expensive components of the car’s drivetrain for 200,000 miles. If you purchased from a used car dealership, then you’re likely to get a warranty that extends the manufacturer’s original warranty. Though Certified pre-owned cars are more pricey than other used cars, they are also well inspected and improved.
3. Used Cars Have Cheaper Insurance
Most new car dealerships may compel you to have full insurance coverage for the new vehicle you’re financing. However, for a used vehicle, the insurance fees are subsidized and easier to cover, especially if you’re paying cash for the used car.

Disadvantages of Acquiring a Used Car
Most people are skeptical about purchasing new cars because they cannot adequately be informed about how it was maintained by their previous owner or why it was sold here. There is always the danger of buying what somebody was avoiding. Here are a couple of disadvantages.
1. Longer mileage
Used cars more often than not have higher mileage, and this is known to reduce their lifespan. If you buy a higher-mileage car, you must prepare to replace it shortly after use. Sadly, this will add to the financial obligation of the user. Most people would consider this extra expense of changing vehicles and purchasing a new car.
2. Limited selection.
It is often difficult to find a used vehicle that meets up with the precise model and features that you want.
3. Limited consumer protections.
Purchasing a used car strips you of certain protection you would ordinarily have with new cars. To protect the consumers, more states are creating laws that cater to protecting buyers of used vehicles, such as the requirement that a buyer’s guide is displayed on the side window of every used car, as well as warranties and so on.

How to Decide Whether to Buy a New or Used Car?
In contemplating buying a new or pre-used vehicle, you have to weigh your options, considering the purchase price and the subsequent maintenance costs.
It is important to note that deciding to buy a new or used vehicle isn’t completely a financial decision; check other variables before making your decision.

Posted in Uncategorized | No Comments »