Buy New Car Vs Used Car: The Right Choice For You!
- Car Insurance,
- Aug 30, 2019
The debate about a new car vs old car has been going on for some time now. A lot of information on the internet just makes the decision of whether to buy a new car or an old one, seem more confusing. Confusing: a nightmare for people who are indecisive. Let us help you by narrowing down the pros and cons of both choices.
Perks of Buying a New Car:
Now the first perk is a no brainer. It feels great to drive a new car with brand new leather seats and that shiny interior and that smell of the new car. Not to forget how you can show it off to your friends and family. Let’s be honest you can’t show off a used car. Moving on to more realistic benefits of choosing to buy a new car are the following:
No Previous Baggage:
Well, who likes baggage, emotional or otherwise? Buying a new car means you do not have to worry about the maintenance issues that may crop up in the very near future. Everything about a new is immaculate.
Easier to get loans:
When you are seeking to get loans to buy a new car, lenders are more willing to lend money because statistics show that people who buy new cars are more likely to return the money rather than the ones who buy an old car.
With new cars you know you can rely on it to not break down in the middle of nowhere with no mechanics nearby or especially when you are getting late for work.
Typically a new car uses less fuel than one which has been used for a while. This saves you money in the long run.
Downside of Buying a New Car:
Okay one word that weighs down most of the perks when you decide to buy a new car: Depreciation. The moment you drive off in a new car with that shiny interior and high mileage, its monetary value is going to start dropping. That’s literally thousands of dollars that you won’t get back. Some other disadvantage that can come with buying a new car as following:
Buying a new car is pretty expensive compared to buying a used car. The cost is much higher and it does not seem like a good option to a new car when you can get a used car for much lower rates.
Higher Insurance Rate:
The insurance rate for new cars is much higher. Since the chances of a new car getting more damaged in an accident than a used one are higher so is the insurance rate.
Beside high insurance rates, the tax rate is higher as well. The government charges a higher tax on new cars since you can afford to buy a new car, you can also afford to pay higher taxes.
Changes in Model:
Despite a lot of research and test drives if you end up buying a model that turns out to be unpopular or gets upgraded after a year or two. The monetary value of your car would drop drastically because that model won’t be in demand anymore. It will also go to make it difficult to sell that car later on.
Benefits of Buying a Used Car:
If the new cars have that shiny interior and new car smell, the used cars have that vintage charm going for them. An old model is tried and tested and is usually popular despite its being old. Some other benefits are:
When you buy a used car, you let someone else pay off the major depreciation cost in the initial years of buying that car. If you buy a used car for let’s say $15000, you can, later on, sell it for $12000 after 4 years which is not a bad deal at all.
Cheaper Registry Renewal:
Since you are buying a used car the registry charges are lower. Buying a used car saves you a lot of cash all in all.
Dents don’t bother that much:
What hurt more than a break-up? Getting a dent in a brand new car. But when you buy a used car that little dent or a chip off paint is not going to feel so painful.
Lower Insurance and Tax Rate:
The insurance rates are lower because the car you are buying a used car since its monetary value is already low. If you drop collision and comprehensive charges and save even more bucks.
Some new cars come along with a lot of useless features which just make a car seem fancy but are of new use but on the other hand if you buy a car with specific features that you are seeking in a car, you pay a lot less than the original owner did.
Disadvantages of Buying a Used Car:
When it comes to buying a used car, there can be a lot of apprehensions attached to that decision. You are not aware of what kind of faults there might be in the car or how many issues there may be in the used car. You do not know why the owner decided to sell it: to buy a new car low mileage. Who knows?
Only a few Months Warranty:
Used cars do not come with the full warranty like new cars. Sometimes the repairs that a used car may require sooner than a new car, can be more costly than buying a new car in the long term.
Not Many Options:
When you decide to buy a used car the options to choose from are limited. You have to pick which is available at your dealer and may not get to have the features you are looking for.
It is possible that when you are buying a used car, you may be buying someone else's problems because you are unaware of how the previous owners treated it. The dealer put on new paint or make it seem worth it when in reality it may not be the case.
Making Informed Decisions:
1- Whether you decide to buy a new car or a used car be careful that you make an informed choice.
2- If you decide on buying a used car, you can visit our website ‘Quick Revs’, you will able to get a finance check, Previous history, registration details, among many other things.
3- If you decide to buy a new car be sure to see that the depreciation cost is lower compared to other models. Choose a model that is popular and most likely to be in demand even after a few years.