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When it comes to purchase a car, you have a wide variety of choices available. Not only you get to pick the model, the brand, but also you can decide if you’re going to buy a new or used car. It’s a very important decision that can make a huge difference in your finances in the future. You need to realize that buying a new care is a significant investment. So, your options may include whether to get an auto loan or pay in cash.
Buying a new car is an exciting process, although you must consider a lot of things before, including flexibility and patience. A new vehicle gives you more peace of mind because you know that you’re the only one who has owned the car. While this is quite a big investment, it’s normal to want to make the right choice. If you’re between buying a new vs. used car, you’re not the only one with this dilemma. Most buyers face this issue, even if they’ve done it before. To help make things easier for you, we’ve gathered here the advantages and disadvantages of both options.
Advantages of a new car
The advantage of buying a new car is that it usually comes with a warranty. Most cars won’t suffer too many repairs in their first years, so you will only have to deal with maintenance of it. You may also benefit a lower interest rate if you choose a long-term loan. These are the basic advantages of getting a new car.
Other advantages may include that a new car will have the best tech features. It means that they come up with fun and very-useful add-ons that can significantly improve your driving experience. Plus, if you’re buying the car for your family, you can enjoy the extra space available.
Disadvantages of a new car
A major disadvantage of buying a new car is that you will have to spend a lot of money on it. New cars depreciate extremely fast. If you drive it incredibly often and try to sell it in the first two or three years, it means that you’re basically throwing thousands of dollars out the window. That money will never come back. Unless you don’t mind lose so much money, it makes total sense to buy a new car right away.
Advantages of a used car
The first and biggest advantage a used car has is that you let someone else experience the depreciation hit of the vehicle. If you decide on selling the car over the next years, you may be able to get almost exactly the same amount you’ve paid for it. Obviously, another great advantage is that used cars are a lot more affordable than new cars. If you’re on a tight budget, a used car is probably the best option for you. Oftentimes, you may be able to find an old-model used car at half the price of a new one on the same model.
Another advantage is that, because are cheaper and depending on the model you choose, your insurance rates may be lower opposed to the rates of a new car. People in their early twenties usually don’t have enough money to afford a new car, and because of their age, the insurance rates tend to be high. So, getting a used car makes more sense than paying for a new one.
Disadvantages of a used car
The main disadvantage of getting a used car is that the purchase process is much more difficult. Used cars can come up with a lot of repairs to do. Also, the price doesn’t depend only on mileage. In order to ensure that you buy a reliable used car, you need to know a lot about cars and what to look for. This way, you’ll ensure that you won’t pay more than the car is worth.
Another disadvantage is that buying used cars don’t come up on the color and with the features you want. What really matters most is to get a qualitative vehicle in good conditions, and at an affordable price. Even if it comes with warranty, you’ll still need to set aside some money for future possible repairs. However, you can take it to a mechanic and have it check before you buy it.
The conclusion is that buying a used car requires more flexibility.
Making the decision
Of course, the final decision will depend on someone’s personal preferences. Regardless of what you decide, make sure that you can afford the car. It’s recommended that you pay for the care within three-year period. If you can’t afford the monthly payments, then you most likely can’t afford the car.
Also, it’s wise to do some great research before buying a specific model and ensure it has excellent reviews. If you aren’t familiar with cars, then it’s best to get a mechanic to look over the vehicle for you, especially if it’s used. Make sure you shop around, visit car locations, such as car dealerships in independence Mo, and check the prices of the models you’re interested in.
Take time and research the vehicle’s history through sites that track down info based on the VIN – vehicle identification number. Also, if you’re buying from private sellers, make sure that they’re the legal owners of the vehicle. Don’t get fooled! You can protect yourself by ordering a title examination report from the National Motor Vehicle Title Information System (NMVTIS). They protect consumers from unsafe cars and fraud.
Determine how much you’re going to pay for the possible future repairs. Expensive vehicles can have parts hard to locate, which will add up to the repair price. Last, but not least, take it to a drive test. No matter if you choose a used or new car, you have the right to test it before paying for it. Take it on a bad weather day to see how it handles.