Should You Choose a New or Used Car?

Should You Choose a New or Used Car?

The decision to buy a car comes loaded with many questions and queries. Whether you should buy a new or a used car is the most important one to make. There are many options available for the buyers looking for either of these options. Both have their own advantages and disadvantages. While new cars are lucrative in terms of looks and features, used cars offer cost benefits to buyers. You should make a decision wisely after assessing these factors carefully.

Benefits of a New Car

Needless to say, a new car is an enticing option that is also very exciting. Riding in a vehicle as its first owner is amazing. At the same time, it offers many perks that include a comprehensive manufacturer’s warranty that comes loaded with benefits. This warranty covers the costs of maintenance during the first few years of ownership. You won’t need to pay for any major repairs when your new vehicle is covered under warranty.

Another advantage of a new car is the high fuel efficiency and advanced features that it offers. It has stunning styling and the latest safety mechanisms. These cars are tested on many parameters to make them safer to drive. Moreover, you can get it customized with preferred additional gadgets and bonus features. Plus, the interest rates on the loan of a new car are lower with this option.

Problems with a New Car

A new car offers many perks but all these are marred by the high costs of owning and depreciation that follows your purchase. Your car loses 15-20% of its cost immediately upon leaving the showroom. In many cases, the cost of depreciation may affect the valuation of the car by 30% by the end of the first year of purchase.

Here, you should also take into account other expenses like high sales tax, more registration charges and costs of additional accessories. Many essential accessories fitted into your car will be charged separately by the dealer. Hence, a new car isn’t a perfect choice from the cost perspective.

The Benefits of a Used Car

If you consider depreciation and high costs of ownership, a used car definitely seems to be a better choice. You can enjoy huge savings with this option. In fact, you can benefit by up to 30% by paying lesser on your car’s depreciation. You can buy a bigger luxury car with the same budget of a small car by going this route.

If you make an informed decision, you can even save a lot of extra costs on this purchase. There are no heavy expenses to be made on the additional accessories because they are usually already fitted into the car.

The Problems with a Used Car

The biggest problems with used cars are the unknown history and performance standards of the car. You would never want a vehicle that spends more time in the repair shop than on the road. Hence, it is advisable to choose a used car from a reputable dealership offering tested and certified pre-owned cars at competitive prices.

Always make a decision on the basis of your requirements, budget and driving habits. Never compromise the safety and performance features of whatever choice you make.