Deciding whether to buy a brand-new car or opt for a used one can be confusing at times. Both options offer a pile of advantages and disadvantages. In fact, there is a 70% rate based on researches for those who prefer to go for the used car instead of buying new cars. As you decide, here is a list of advantages and disadvantages to consider before you buy a brand new car or a used car:
When it comes to price, buying used car is an advantage because of its lower price. Most brand-new cars are costly and expensive, and there is a required upfront fee when you apply for a car loan for brand new ones. Used cars have lower price whether you choose to purchase it from a private seller or from car trades. You may even ask for discounts in case there are hidden problems detected.
All cars depreciate. Brand new cars depreciate up to 15% or more the minute it lands your garage. For the first year of use, cars depreciate up to 40%. Because of this, the value of the car drops down. Moreover, used cars still depreciate, but the depreciation declines, thus the value remains at low level compared to brand new ones.
Insuring the car is essential not only for assistance but also for its value. Brand new cars cost higher insurance fees while used cars cost less when it comes to insurance.
With a new car, you are sure that there is no previous wear and tear on body, mechanical engine, and cosmetics. With a used car, there may be a need for higher maintenance fee due to decreased condition. Know the risks and make sure you are disclosed with problems and repairs the used car already went through.
Brand new cars usually come with comprehensive warranty coverage for up to 4 years. Repairs and maintenance are essential in keeping the life of the car continuous. On the other hand, used cars may no longer have warranty from dealer or manufacturer. The previous owner may have used up the warranty already. When a private seller sells the car, he may not provide warranty anymore.
Brand new cars are expected to have the latest and innovative features like fuel efficiency, higher mileage, and many more. You also have the option to choose the features and options you prefer for a brand new car. With a used car, it may take you long period of time to wait for the features or options you want. You will just need to accept what features a used car has when you buy it.
Whether you are buying a brand new car or a used car, all you need is a very detailed information about the car you prefer. It is best to have it checked by your own mechanic who can give you honest report. Before you pay for the car, see to it that you know the risks and how it can be handled well so that your money paid for it will never be wasted.