There are so many options when it comes to buying a car. Hundreds of different models are available. Then you could be looking at whether you should buy a car, truck, or SUV. Should you get electric or traditional? Add to the equation that you can buy new or used and it can throw things completely into chaos. There are pros and cons to every model and whether you decide to buy new or used. And one that is best for somebody else may not be best for you. Everybody has different needs and tastes so there is no one size fits all scenario. How can you know what the right way to go is? You just need the information to make sure you are making an informed decision. In this article, we will go over what the differences are between buying a new or used car.
*This is a collaborative post. Image Source
*This is a collaborative post. Pros of buying a used car
There used to be something of a stigma attached to buying a used car. Often it meant that you weren’t good at making financial decisions because you were really buying somebody else’s problems that were going to cost you. These days, buying a used car is almost like buying a new one. In fact, they are no longer called used cars at dealerships. They are referred to as pre-owned instead. You can even get a pre-owned car that gets certified so you know that every part is checked and replaced when needed. Dealers like Glenwood Springs Car Dealerships refurbish their used cars so they come off the lot as if they were new. That’s just one of the benefits, so let’s look at some others.
Less depreciation
All cars depreciate in value. As soon as you leave the lot your new car is worth less than what you paid for it. This is because a car is an expense and not an asset. It costs money to maintain and no matter how well you maintain it, it will one day not work anymore and the cost to get it working will be more than the worth of the car. This happens to both used and new cars, but the drop in value for a new car is considerably higher than how much value a used car loses over the same period. If you buy a car that is around three years old, let’s say then you are picking up a car that has already had much of its value drop. This means that it will depreciate at a slower rate so you could theoretically sell it for closer to what you paid for it.
Cars are better now
You can easily get up to 100,000 miles out of a car before you start needing to do routine repairs like changing the timing belt or needing a new alternator. Buying a car with 30,000 miles on it will give you a few years of driving before hitting those milestones that cost you money while also having paid far less than the new model. There really is not that much of a mechanical difference between a car that is three years old and one that comes right off of the lot. That isn’t to say that a used car won’t have any problems if it is fairly new, because of course, they could. But, the types of problems could have come from the factory and not because of the age or mileage of the car.
Better insurance rate
Pre-owned cars cost less to insure. One of the reasons is the previously mentioned depreciation rate. The car is worth less now so it costs less to insure if it gets totaled or stolen. You can also opt for the lower coverage of a used car since you are required to buy the full insurance coverage when financing a new car as some states require.
New car advantages
Buying a new car is exciting and the feeling of sitting in one that nobody else has owned is thrilling. After reading the last section you may be thinking that buying used is the better option. Well, besides the new car smell and excitement of being the first owner, there are other reasons that you might be better off with a new car.
Less to think about
When you buy a used car you have to take a few things into consideration. Who owned it before you? Did they do routine maintenance on time? Was it garaged or parked in the driveway? The answers to these questions make it difficult to know what you are actually getting. A new car has none of those issues. Your decision rests on other factors so there is less to think about and doubt when it comes to a new car. If the style is what you like and the car delivers good mileage at the price you can afford then you are simply thinking about if you like that one over the style of another.
You get the full warranty
When you buy a new car you get the full term of the warranty. When buying used you have to hope there are still some miles or years left on the warranty from when you bought it. This gives you a lot of peace of mind that you will have somebody in your corner if something goes wrong with the car during the warranty period. It may not be ideal to be without your car being repaired but at least it won’t cost you any money out of your pocket.
This article may not have answered specific questions you have about the new vs used car debate, but hopefully, it has given you something to think about. Reading the advantages should show you what is important to you when picking out your next car. Whatever your budget happens to be you can find the perfect situation that you will be happy with.
*Disclaimer – This is a collaborative post. This post has been pre-written.
