Over 5 million cars have been sold and bought on eBay. Car dealers are doing everything they can to make the car buying process less stressful for consumers.
We’ve all been there. It seems like just when your car is finally paid off, something goes wrong. Either you’re in an accident or your car has just reached old age and you have to decide between repairing or replacing it.
If you decide that it’s not cost-effective to put any more money into your old car, you’re faced with an even tougher decision: whether to buy a new or used car.
Keep reading for more on the pros and cons of buying a new or used car to help you make that decision.
Ah, that new car smell. There is no feeling quite like driving a brand new car off the lot.
Having a brand new car is the ultimate status symbol in western culture. New cars come with lots of shiny bells and whistles but are they worth the hype and increased price tag?
Keep reading for some pros and cons of buying a new car.
The biggest pro of buying a new car is that it is brand new. With a brand new car, you don’t have to worry about the history of the vehicle.
There were no previous owners and therefore no chance that the vehicle was in a collision or was improperly maintained.
Purchasing a new car guarantees a much longer lifespan on the vehicle as the parts are all new. There should not have been any repairs or replacements to any part of the vehicle, meaning it is in perfect condition.
New cars almost always come with a warranty. You will have a lengthy period of time in which you won’t have to worry about the cost of car repairs or discovering any undisclosed problems with the vehicle.
New cars these days usually come with free roadside assistance. This means you don’t have to worry about the cost of purchasing this coverage from a third party like AAA or your insurance provider or the cost of towing the vehicle should it break down.
Furthermore, you will have the peace of mind of knowing you are covered in an emergency.
New cars are held to the highest fuel efficiency standards and will come with the latest safety features like airbags and structural reinforcements.
If you think a new car is not something you can afford, think again. Car dealerships often offer to finance with low or no interest. It can actually be cheaper to purchase a new car than a used car.
The biggest con to purchasing a new car is, of course, the high price tag. New cars usually cost more than used cars and they depreciate in value as soon as you drive them off the dealership lot.
A substantial portion of the value of a vehicle is lost within the first few years. When you purchase a car from a dealer, you are paying retail price. If you were to try to sell that car back to the dealer, even seconds later, it would only be worth what is called wholesale price.
New cars have higher insurance rates than used older models. The thing about new cars is that they are only new for a short while. Sooner than later they will show signs of age and wear, but the monthly payment you owe will not lower.
Used cars might not have the shiny appeal of new cars but they are often the more practical choice for financially savvy Americans.
The beauty of used cars is that you can find a late model, low mileage vehicle for less than half the price of a new car.
These cars are new to you and also come with many of the same features offered with a new car. Dealerships who sell used cars often offer great warranties and the opportunity to purchase an extended warranty when the remaining balance of the factory warranty expires.
Most cars these days will last for over 100,000 miles with little to no trouble. Many car consumers trade in their vehicles every few years and never come close to reaching that threshold on a vehicle. For this reason, they aren’t likely to notice a difference between driving a new vehicle or a late model, low-mileage used vehicle.
If you know anything about car mechanics, you may benefit from purchasing a used car that needs a little TLC. You can often purchase a car like this for very cheap and fix it yourself.
The biggest con of purchasing a used vehicle is not knowing its history.
While companies exist that track the accident and repair history of vehicles, there will always be an element of uncertainty. You will never know how the vehicle’s previous owners maintained the vehicle or why they traded it in in the first place.
Used cars will require more maintenance, which results in added expenses.
It can be harder to find a used car with low mileage and a late model year that comes with all of the features you are looking for. You lose the element of customization that comes with buying a new car from a dealer.
New or Used Car?
The question of whether to buy a new or used car really comes down to the financial and personal preferences of the buyer. Both new and used cars come with pros and cons.
Buying a car is one of the biggest purchases most people will make in their lifetime. It is not a decision to be taken lightly.
Take your time and shop around. It’s often a good idea to consult local dealers in your area. You can also search around for some great truck buying tips.
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While deciding whether to buy a new or used car you can start saving money today.
Check out our blog for more money saving tips to improve your financial health.