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Should you Buy a New Car or Used?

Have you thought about buying a new car? Or has your car broken down and brought you to a point where you need to get yourself a new car? Either of that, it is an expensive need. If you are pacing the floor on knowing what to do now? Going from new to used – you are probably thinking about what to do.

Since this is a costly need – you will have to think about it a lot. You are not overthinking it – so here we will find out which is the best option for you. Let us get going to the topic, shall we?

Pros and Cons of Getting Yourself a New Car

Here are some merits and demerits of buying a brand new car.

Pros

a) You Have Great Financial Deals:-

There are plenty of carmakers and dealers too that are willing to offer you financing programs and tools such as a car loan EMI calculator that you can use for free. You can get low-interest rates if you have good credit. It can make it less expensive to finance a brand new car than an already used one.

b) Protection of Warranty and Reliability:-

Most of the new cars have a good reliability record, and if something does go wrong, then it is actually covered by the manufacturer’s warranty. When you buy a new car, it also means that you have no concerns about how the car was treated before you bought it.

c) The Most Advanced and Latest Characteristics:-

A lot of carmakers and dealers offer financing programs with low or no interest if you have good credit. It can be less expensive to finance a new car than an already used one.

d) Roadside Assistance for Free:-

A lot of new car dealers and more come with roadside assistance. It can save you the cost of paying for coverage on your own or being stuck with a huge towing bill when your car does break down.

You should know that there are two sides to every coin – and so does buy a new car for yourself. Here you go, the downsides you definitely have to know.

Cons

a) It is quite more expensive to insure:-

A new car will also have a higher auto insurance expense than a used one would. This is because the replacement value is much higher. You can check on Youi Car Insurance for a number of options to match the level of auto insurance you’re looking for.

b) It will depreciate fast:-

A new car will depreciate much quicker than its utilized counterparts. A car will lose the most value in the very first few years that you have owned it, and a big part of that is in the first few seconds of the lot. By some estimations – the instantaneous loss can be up to 20% of the whole car’s actual value.

This is because when you buy a new car from a dealer – you are paying the retail price. When you are off of that lot – your car will be only worth the wholesale value. That is the sum that the dealer would be paying if you decided on turning it back.

c) New Gets Old:-

Now, or soon – new would not be new forever, would it? In a day, in one week, or even in a month’s time – you will get your first scratch or more. At the end of the first year, the floor of your pretty new car could be stained or the doors dinged. So, new will be old soon whether you like it or not.

d) It is more expensive to purchase:-

When you buy a new car, it is hard on your wallet. When you are using an auto loan to finance your new sweet buy, then you will most likely borrow a lot more than you would with an already used car and then end up paying more interest over a period.

Well, now you know so much about a new car – it is right when you know about a used one.

Advantages and Disadvantages of Buying yourself a Used Car

Let us look at both sides of buying a used car.

Pros

a) You can get a warranty even when it is used:-

When you buy a certified pre-owned car from a dealer, then you would likely get a warranty that extends the manufacturer’s original warranty.

b) It is cheaper to insure than a new one:-

While a dealership needs you to have full insurance coverage for a new car that you are financing, you would be able to spend less on insurance if you are paying cash for a used car.

c) The Prices are Lower:-

By the time a car comes on the already used car market, a lot of its depreciation has already happened. Buying a used car is an open opportunity to get more out of your money.

Cons

a) Mileage is an Issue:-

A used car is likely to have a greater mileage. This will reduce the lifespan. If you buy a high mileage car, it is possible that you would need to replace it sooner than later, which adds to the costs.

b) There are lesser consumer protections:-

Most of the consumer protection laws pertain to the years of the car being used. Only cars under a certain years of age would come under the law.

c) You do not have a lot of options:-

It can be a high task to find a used car with the same options and features that you want.

Which Option to Buy?

There are a lot of attributes you need to consider while thinking about this option; both of these options have pros and cons. So, the end choice comes to your goals and needs. Here, we can see some of the aspects you need to take into your mind before you can make the right decision.

  1. The down payment that you can make.
  2. The taxes, title, and fees that you can afford at the closing.
  3. What kind of insurance are you looking for?
  4. The repairs
  5. The gas and oil costs that you will have based on how much you travel.
  6. The maintenance costs.

Conclusion

In the end – the choice of a new or used car becomes yours, as you know your financial bars. But make sure you look at both sides of the options you have.

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