There is an array of choices for you when the time comes to acquire a personal car. Not only do you need to decide on what model to pick at Car-Buying-Strategies.com, but also whether to purchase a new or second-hand car.
It is a critical decision that can impact on your finances in the coming several years. No wonder it’s important to realize that purchasing an auto is not an investment. At times your options will depend on whether or not you are eligible for a car loan, or if paying in cash is a requirement.
That said; let’s dive straight away into comparing a brand new vs. a refurbished car.
Pros of Brand New Auto
#1 Warranty
Having owned machines in the past, you must know that it is their nature to break down. But if these problems kick soon after the purchase, someone else should settle the repair costs— and that shouldn’t be you. A warranty means somebody else will.
#2 Few repairs
Yes, new cars require less fixing, all you need to do is concentrate on maintenance.
#3 Low-interest rate
Well, but not always. Some dealers offer low-interest rate financing which significantly cuts down the amount of interest you pay on the car loan.
#4 You enjoy the latest tech
We all would love to drive the market’s latest that you can connect to a smartphone, has better gas mileage, improved user experience, and lower emissions. Plus, you may also go for a hybrid and cut down on monthly transportation costs.
Cons of a brand New auto
#1 A financial dent
As we had said; this is not an investment. As soon as you spend it off the lot it begins depreciating. And in two to three years, it will have depreciated significantly. The lesson; don’t buy brand new unless you have extra finances that you don’t mind losing.
#2 Brand new model hitches
Everyone wants to try the latest model until auto analysts like Top Gear have exposed their shortcomings. Honestly speaking not all today models are greater than yesterdays’.
Pros of a Used Car
#1 A smaller financial dent
In other ones, the initial car owner takes the biggest financial dent. You can always sell second-hand for almost the same price purchased it in the coming few years. Moreover, you can find excellent financing options from a credit union or local bank and since you aren’t losing cash on depreciation, you may be eligible for a zero interest loan.
#2 Lower insurance rates
Another benefit of refurbished cars is their lower insurance rates compared to new ones. You can always save up this money and use it elsewhere.
Cons of a Used Car
#1 Frequent repairs
A used car may fail to perform to your expectations or rip you off because you have to buy this spare or fix that fault. You may even need to set aside some money for monthly repairs.
#2 You go for what fits best, and not what you want
You may be forced to compromise many things including model and color (both of which mean a lot to car owners) to get one with better mileage and history.
Making your Decision
Everyone will have to make the choice themselves based on the many different factors we’ve seen listed in the pros and cons. Whether your decision favors you or not will depend on how much time and effort you spend researching.
So what are you considering a new or used vehicle?
