Are you buying a car but can’t decide between a brand new mint condition one or cheaper but previously owned one? Buying a new car is exciting and there’s this pride and peace of mind about being the vehicle’s first owner. But then again, new cars lose about 40% of its value within 3 years. So budget-wise, it’s wiser to opt for used car. For less than half the price of an average new car you can buy a decent 3-4 year old used car. We’ve compiled together a few pointers of what you should consider before deciding to go new or old.
In case of buying new. You have to be prepared to pay big money. Very few new cars are selling at less than $10,000. Manufacturers and dealers now offer attractive rebates and low or no interest financing. Maintenance costs will be low for new vehicle, in fact it won’t need maintenance for the first few thousands miles except for the oil-change or a tune-up, some manufacturers even cover the costs of these routine maintenance. On top of that there’s the warranty which usually covered at least 3 years. With manufacturer warranties, if something goes wrong, the manufacturer or the dealer will be responsible. Also the lemon laws which are offered in all 50 states only cover new cars. If you can prove that your new car is a lemon, you can get a replacement car or have your money back.
In case of buying used. You don’t only pay less for used vehicle. But you will also save on financing costs, insurance premium, registration and licensing fee. But used are usually unreliable. You don’t know what you’re getting yourself into. Greater chances of expensive unwarranted repairs. But then some models can be more reliable than some new cars. And although the used cars don’t carry the same warranties as new ones, the original manufacturer warranty is transferable to a second owner, usually with no charge. And with more manufacturers offering the certified pre-owned programs, making buying used vehicles less of a gamble as well.
But in the end the decision to buy used or new vehicle comes down to what you can afford. If you have cash, go the new way and enjoy the great feelings of being the original owner of a vehicle. But if money is tight, save your money and comfort yourself that one day you will be able to afford your dream car.
