Buying a car requires a lot of patience, research, and flexibility. In addition, you have to make various decisions based on your personal preferences and financial situations.
Before you can begin your car-buying journey, you need to decide whether you want a brand new vehicle or a secondhand one. While buying a shiny new car is tempting, and it assures you of being the sole owner, used cars can save you some bucks and be the more intelligent choice for you.
Thus, in the following articles, we discuss the pros and cons of new vs. used cars, along with tips and advice so that you can come to an informed conclusion:
Buying a New Car
Advantages: One of the most apparent benefits of a new car is that it is reliable, in perfect condition, and often comes with a warranty. You also have a general idea of the market rate of the vehicle, making it relatively easier for you to negotiate.
While a new car costs more than a used one, it will save you money in the long run in terms of maintenances and refurbishments. Moreover, armed with the latest technology, higher fuel efficiency standards offer better gas mileage.
Disadvantages: A new car suffers massive depreciation in the first two to three years after you have purchased it. You end up losing money as soon as you exit the dealership’s lot. Consequently, the resale value of your car will be considerably lower than the buying price.
In addition, it costs more to insure a new car than they used one, as their replacement values are higher. Finally, you most likely need to take out a loan to purchase a new vehicle. Subsequently, you end up paying more than the car’s original value when you add up the interest paid over time.
Tips and Advice:
- Since new cars suffer from high depreciation rates, choose a vehicle that will serve you for a long time. Determine the most essential, must-have features and the reason for purchase to simplify the decision.
- Focus on the overall payments instead of just the asking price. When you buy a new car, you have to pay for insurance, taxes, and interest if you take out a loan. Therefore, define the detailed total cost to ensure that you are not splurging way over your pre-determined budget.
- Pay special attention to the deals and incentives offered by the sales representatives as they can also add a hefty bump to the original cost.
- Always take the vehicle for a test drive to ensure it is comfortable and the right fit for you before starting the price discussions.
- Invest in safety features in addition to the aesthetics. Look for innovative driver assist systems such as blind-spot monitoring, automatic emergency brakes, rear and transverse alerts, and so on. These features can save you and your loved ones’ lives.
- Do not hesitate to ask your dealership for added perks, such as free oil change or other maintenance benefits. You can also ask for a subsidized deal on winter tires and rims if your car will be in use all year round.
Buying a Used Car
Advantages: The most significant advantage of buying a used vehicle is that it has already suffered much of its depreciation. Consequently, you may be able to sell the car for almost the same amount you paid for it even after a few years. Not only can you easily find a vehicle within your modest budget, but the insurance rate of a used car is also more affordable since the vehicle has already depreciated.
Certified pre-owned cars available at dealerships may also have a warranty extending the manufacturer’s original warranty. However, they are slightly pricier than the other used cars, as they are inspected rigorously.
Disadvantages: Secondhand cars come with their set of problems. They may not be very reliable, for starters, as you do not know how the previous owner handled the vehicle or the car’s history. It might also have higher mileage, thereby reducing the lifespan of the vehicle. Moreover, you may have to set aside a small amount of money every month to cover any unexpected car repairs that might materialize after you have purchased the vehicle.
You may have to compromise on the aesthetical aspects of the car to buy one with reliable service history and lower mileage. You also need to have a lot of patience and time to secure a used car that fulfills your requirements within your budget.
Tips and Advice:
- Do thorough online research to figure out an estimated price of the car you are looking to buy before you begin car hunting.
- Check all the paperwork and vehicle history reports thoroughly. These highlight vital information about the car’s condition.
- If you buy from a private seller, ensure that the seller’s address is the same as stated on the V5C logbook. Then, check the logbook registration and chassis numbers against those on the car.
- Examine the car yourself or hire a mechanic. Examine the vehicle during daylight and good weather so you do not miss any potential damages.
- Once you are satisfied with the vehicle’s condition, take it for a test drive to ensure that it performs according to expectations.
- If possible, buy used car UK from authentic entities so that they are reliable.
The decision to buy a new or used car depends on you. However, make sure that you can afford the vehicle or are able to pay it off entirely within three years by calculating the upfront and ongoing costs. Apart from monetary factors, you should also ensure that you are not compromising too much in terms of features just to secure a cheaper car. As long as there is no rush, do detailed research about the make and model you want. Also, check what is available in the used-car lots and new-car showrooms. Finally, compare the price difference and come to a decision based on what makes you most comfortable.