Apart from being selective about the model, you also need to be very clear-headed about whether you want to buy a used or new car.
Frankly, this is a never-ending debate. If you do a bit of research, you will find options in favor as well as against both these options.
The best way to get out of this dilemma is to measure the pros and cons of both the alternatives and then draw a conclusion that goes best with your present financial standing and needs.
So, here is a comprehensive list of the advantages and disadvantages of used and new cars.
Since buying a car is not a small affair, sink into the following details before making a final decision:
Benefits of New Cars
Giving arguments in favor of new cars is not a popular stance in the eyes of many experts. But one thing is certain; there are numerous benefits to purchasing a brand new car. You can’t turn a blind eye to their sunny-side.
What is the point of buying a car which does not give you peace of mind?
Second hand cars are more likely to break down. If you are heading towards an urgent meeting, there is no guarantee that your old car will not ditch you halfway there.
Keep in mind; regular maintenance is the first pre-requisite of a used-car. To make the matter worse, if you end up buying a discontinued car, you might have a hard time to locate its parts.
A new car hardly requires maintenance. Of course, there is no car beyond occasional repair, and new cars might have warranties to cover them. In accordance with the figure provided by the U.S Bureau of Statistics, used cars are the biggest reason why an average American has to spend 1.5 percent of his total annual income on auto repairs.
A vast proportion of people buy cars with the mindset to sell them in the future. Even if you don’t want to sell your car, sometimes circumstances might force you to do.
Let’s assume if you buy a brand new car today and sell it after two years, you will get a decent amount. This is particularly true if you buy a car that depreciates at a comparatively slower rate.
When buying a new car, you have total freedom to choose whatever color, model, and features you want.
If you can’t find exactly what you are looking for in showrooms, dealers will personally ensure that you get a personalized car. It just might be the kind of car you’ve been dreaming about forever.
Your dream car as a used car might be available but generally you will likely need to compromise that dream and be content with whatever is available.
Easily Accessible Credit
In 2018, the auto industry had a lion share of 2.8 percent in the gross domestic product of the U.S. This is one reason why car manufacturers enjoy the luxury of government support.
Easily accessible and flexible credit opportunities are at your disposal for a new car. You can’t always get a loan on similar terms if you want to buy a second-hand car.
Pitfalls of New Cars
What scares potential customers away when they think about buying a brand new car?
There is no such thing as a cheap car, even if you opt for the used one.
However, depending on your choice, a new car can break your bank. Undeniably, the latest technology and features are tempting but they come with a hefty price.
Car ownership has dropped among the people, falling in the age bracket of 18 to 34, due to the increasing prices of automobiles, notes Forbes.
Insurance costs of a new car can be back-breaking. If you combine all your monthly premiums, sometimes they can cost you as much as an old car.
The depreciation in the price of your new car will begin as soon as you take your first ride. Statistically speaking, within the first year, the depreciation could touch a 20 percent devaluation. If you have a habit of changing cars repeatedly, new cars are perhaps not your cup of tea.
Photo attribution: RL GNZLZ licensed under Creative Commons ShareAlike 2.0 Generic (CC BY-SA 2.0)
Benefits of Used Cars
It is commonly assumed that used cars don’t have anything to offer except the low price. Not true. You can find so many people who own a used car even when they have enough bank balance to afford a new one. In 2016, used cars recorded an all-time high in sales.
This has to be the number one reason that triggers a potential buyer to go for a used car instead of a new one. You can find a used car anything between 30 to 90 percent less than the sticker price. To top it off, a pre-owned car’s insurance costs are far lower than a new car.
If you want to use your car just as a piece of metal for the pick and drop, then a used car can give you the best return on the investment.
From the technical point of view, the first owner of the car suffers from depreciation more than anybody else.
If you are an absolute maniac at maintenance, depreciation will be even less. In all likelihood, a used car will provide you a financial cushion at the time of resale.
You save Money at Annual Registration
The rules of car registration vary from state to state. Typically, a car owner is liable to pay a robust fee in the first three years. In other words, if your car has been registered for more than three years prior to your purchase, you will end up saving money.
Pitfalls of Used Cars
Looking at these advantages, the used car seems to be a sound choice for consumers. However, the following things might just turn you off:
Unavailability of information
The biggest drawback of a second-hand car is its unknown background. You need to have a service manual to look after the car properly, and the majority of the owners are not prone to keep the service data.
In addition to that, some drivers are unique, and they unusually tune their car. Not knowing all these factors can cause difficulty in the long run.
Well, over the years, cars have turned into a status symbol. With an old car, you might not be able to get as much attraction and appreciation from your circle. When it comes to the appeal factor, a used car can never be the substitute of a brand new car that has yet to go through the wear and tear of the outside world.
Lack of Safety Features
The car industry is rapidly growing. Every new car that hits the market has something to surprise the consumers. It includes advanced safety features as well.
An old car might be less effective in accidental situations due to their compromising safety elements.
According to the figures provided by Crimson Hexagon, safety remains the topmost priority of the buyers.
You may be a defensive driver, but sometimes you are dragged into an accident due to the fault of the opposite driver. Lack of safety can be a scary thing, especially when you have a family.
The Final Verdict
The reason why this debate will never end is that people look at it from their perspectives.
As you can see, both categories have their respective pros and cons. In the end, it all comes down to the buyer’s needs.
If you see more positives for yourself in a used car, go for it. If a brand new car holds more positives, that’s the right choice for you. Make sure to shop around to get the best deal.
Don’t be one of those 67 percent of buyers who don’t visit more than 2 dealers before settling for a car.
Michelle Joe is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences, and express herself through her blogs. You can find her on Twitter, LinkedIn, and Facebook.
Photo attribution: Mercedes-Benz of Encino licensed under Creative Commons 2.0 Generic (CC BY 2.0).