Be it a new or an old car, choosing the right vehicle is a huge deal as it is likely to be your ride for quite a lot of time in the future. Meanwhile, there are a plethora of models available, and you can inspect them here to make an informed decision. So you may go for a New 2022 Mitsubishi Outlander or opt for the Used 2009 Dodge Journey R/T. However, both brand new vehicles and used ones have plenty of benefits, and your choice should depend on your unique needs.
While a new car offers the benefits of the latest technology and good warranties, it is a lot more expensive and depreciates quickly than a used car. So, the decision for the purchase must depend on the consideration of the following factors:
New cars have a warranty that covers repairs and maintenance costs in the initial years of ownership. However, new cars require very few repairs, so your attention should be more on maintenance. On the other hand, a used car may need to go through a lot more repairs which no warranty will cover.
You also can purchase a certified pre-owned vehicle that has undergone a thorough inspection and is eventually sold by the manufacturer, as such cars may also come with warranties.
With rapid technological advancements, cars have become more reliable and usually do not require repairs until more than 100,000 miles are driven. Hence, you can easily buy a car that is two years old and sell it after five years without the need for regular repairs. Also, you can sell the car close to the price you bought it for.
It is a given that new cars cost more than the used ones. However, many car dealers also offer attractive buying deals at lower rates of interest to boost the sales of new vehicles. So you may use such financing options that will reduce the interest you pay during the loan tenure. Additionally, you can also find zero-interest loan options for new car purchases.
Meanwhile, such offers are usually not available for used cars, but you can still avail of convenient and easy financing options through credit unions or local banks. However, you should remember that you need to be pre-approved before applying for a loan. And if you don’t qualify, you have the alternative of making the payment in cash.
A new car has the best latest technology that offers improved safety and better mileage. Moreover, various brands also launched hybrid cars that reduce emissions which can also cut down your monthly expenditure on transportation. You may also be able to get featured technology with a new car, like a GPS or Bluetooth music system. With such rapidly changing technology, the features of a five-year-old car may be considered outdated. So, if availing of the latest technology is a priority for you, you may consider purchasing a new car.
The insurance costs of new cars are high owing to their higher replacement values. On the contrary, a used car has lower insurance rates due to a fall in its price. Therefore, it will likely cost you less for collision and comprehensive coverage. You may also drop the insurance costs and use them in the future for repairs. So, while you require full insurance coverage for a new car, you spend a comparatively lower amount or completely save on the insurance costs on a used vehicle.
Cars are depreciating assets which means they lose value over time. Hence, when you buy a new car, it will take a massive depreciation hit in the first couple of years. As such, the advantage of purchasing a used car is that you don’t have to take that depreciation hit as the previous owner endures it. So, buying and maintaining a used car may save you a lot of costs, and you may also get a great deal when you plan to sell it.
In addition to considering all these factors, make sure you do thorough research on the model you are planning to buy, and you can inspect them here. It may also be advantageous to get a prior estimate of repair and insurance costs. Lastly, shop around for the best prices to get the most out of your car purchase.