So, you’re in the market for new wheels. Whether it’s your first or your current car just gave up the ghost, the question is whether you go and buy that brand-new car from the TV ad telling you it’s the only way to ride or follow your know-it-all friend’s advice to buy a slightly used car for cheap. It’s a tough decision to make, but I’ll help ease the burden by listing the pros and cons of buying new and used cars. You decide which option best meets your needs.
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New car: Pros
Of course, you’ll get that “new car smell.” There’s nothing better than the smell of your new car coming straight out of the factory. Buying new means that you have no concerns about how the vehicle was treated before you bought it and if anything goes wrong, it’s probably covered by warranty.
Purchasing a new car may also come with a roadside assistance package, meaning, you don’t have to pay for a roadside assistance program on your own, or towing expenses if you are stranded on the side of the highway.
Buying new also means you’re likely offered the highest fuel efficiency for your car. You’ll also have the latest safety features.
Many companies now are offering financing assistance with low interest or no interest, making it sometimes less expensive to buy new than used cars.
New car: cons
Depreciation. It’s the first thing that comes with your new car. The moment you drive the car out of the dealership, its value is reduced by a huge chunk. Depreciation happens fastest in the first years of ownership.
Buying new car means you are both incurring higher debt and losing value more quickly than if you had purchased a used car. New cars also come with higher insurance cost than used models. In its defense, though, some insurance companies don’t accept cars that are more than 10 years old.
If you’re planning to buy a keeper, though, depreciation is not that big of a deal.
Used car: Pros
Obviously, used cars are more affordable than brand new ones. Pre-owned vehicles’ tag prices drop somewhere between 10 percent and 70 percent less than its original price. Buying late-model low-mileage cars are the perfect bargain because they’re practically new for almost half the price.
Insurance cost is lower because of depreciation. A car with 40,000 miles can give an additional 60,000 miles of trouble-free driving.
If you’re handy with the wrench and are low in cash, you can buy cars for just a few thousand dollars, maybe even a few hundred. You can customize at your will or your budget. Most new car owners tend to wait for the warranty to lapse before they start to make modifications to their cars. Modifying your vehicle during the 3- to 5-year warranty period will void the warranty. So, if you bought your car after that period, feel free to customize your ride.
New car: Cons
When in the market for used cars, always try to bring your trusty mechanic. Most used car sellers won’t tell you their car has been flooded, involved in an accident or worse in a criminal case. There are a lot of ways to know your vehicle’s history, you can ask for the original documents that include service history.
Buying used cars also means you’ll have a trip to the service centers more frequently than if you bought a new car. Taking it to the service center, driving home and the time spent waiting in between account for time and money.
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You’ll also have outdated technology and features. Buying a second-hand vehicle sure has its advantage especially if you’re on a tight budget, but work and money are needed to ensure these cars are roadworthy. So make sure you consider these before deciding to get one.
Jeffrey Allen Dukes here. I work at a car dealership where I have been recognized as an ‘employee of the month’ a couple of times now. Visit my blog to know more tips about buying cars.
