A prospective car buyer is always in a dilemma. He is confused about which one is the better option. On the one hand, you are getting a brand new machine at a handsome amount, and on the other hand, you may be selecting a piece of junk for much more.
But if you are well informed about the different aspects of new and used cars, you will undoubtedly make a prudent decision. The decision will be best-suited to your situation.
Let’s see, Buying New Vs. Used Car: Everything You Need to Know!
1. Buying New Car
Purchasing a new car is one of life’s more exciting experiences, Buying a new car has a lot of benefits – some more tangible than others.
Buying a New Car Pros
1. You will get the latest technology in the market regarding emission norms, mileage, and safety features.
2. The latest features may be available, e.g., connectivity, steering controls, etc.
3. Hardly any repairs are required in the first few years. You get a warranty for your new car.
4. The rate of interest may be lower in case you get your car financed.
Buying a New Car Cons
1. Everything excellent comes for a price. You need to make an upfront payment from your savings or need to take a loan.
2. As soon as you bring your car out of the showroom, the vehicle’s value goes down. Technically and financially, it is not an investment as you lose money every year.
2. Buying Used Car
The biggest advantage of buying a used car is that you let someone else take the biggest depreciation hit on the car.
Pre-owned vehicles tend to come with much lower price tags, but there’s more to consider when choosing them. You should also consider the benefits and downsides of certified used cars (CPO cars) and leasing a vehicle.
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Buying a Used Car Pros
1. You do not bear initial depreciation costs.
2. The resale value of your car may not drop significantly in two to three years.
3. You need not risk into the unknown terrain and can buy a model which has positive reviews by users.
4. You save a good amount of insurance cost as well.
Buying a Used Car Cons
1. You may end up paying a significant amount on the repair of a used car.
2. Your favorite car may not be readily available off the shelf, and you may have to do some research before buying.
3. There is a risk of overpaying. You may end up choosing the car with a lot of wear and tear and still paying a higher than market price.
Should I purchase a Brand-New or Used Car?
Well, it depends. It is a personal preference. Some people reject the very idea of buying a used car. It also depends upon the specific situation. Sometimes, the used car which you like may not be available at a price you want.
Apart from the personal preferences, the car has to be affordable to you. There is a thumb rule. If you can repay the loan within 3 to 4 years, you should buy it.
If you can research well and remove the demerits of that car, your decision becomes more comfortable. Buying a used car from a certified shop ensures that you get the right vehicle at the right price.
Which is Best for You?
It’s a trade-off between the advantages and disadvantages. If you go for a new car, no doubt you will get all the benefits mentioned above, but at the same time, you are not able to get the benefits of buying a used car and also have to bear the demerits of a new car.
In my opinion, you may not get the best of both worlds. You get something, and you lose something.
What do I get in a New Car? : I get the latest technology and features and need no repairs in the initial years. The interest cost is low, but I am paying a hefty amount. My car’s value goes down immediately, and I paid a higher price for the additional features that I do not get in a used car.
What do I get in a Used Car? : I got a tried and tested model at a fair price, and the certified shop ensured that I got the fair deal. I may have compromised on some features, but they may not be necessary to me. I can use the car and still able to sell at almost the same price within three-four years.
Based on the above arguments, the USED CAR is an obvious choice: No depreciation, no repairs (probably if bought from certified shops), fair price with low insurance cost, good resale value, and a successful model. By doing proper research and homework, I can dismiss many negative objections in my decision.
However, if you are allergic to buying second-hand stuff and ready to pay an extra amount even for unnecessary frills, you may purchase a new car.
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