Used vs New Car: What is Right for You?

It’s the classic question. When you’re in the market to purchase a car, should you get new or used? There are advantages and disadvantages to each one. Since a car is a big purchase, you should tread carefully. Here are some things to think about.

Depreciation

This is probably the biggest advantage of a used car. They’re significantly cheaper due to deprecation.

A new car drops in price as soon as you drive it off the lot. This is why new cars are so expensive to drive. A used car is often a fraction of the value of a new one after only a few years.

However, the rate of depreciation slows down over time. A 5-year-old car depreciates much slower than a new one. If you’re looking to reduce your total cost of ownership, you should own the same car for a long period.

Since cars are relatively expensive items, you’ll save a great deal of money. If you drive used, you could reallocate the funds to paying credit card bills or going back to school.

Expensive upgrade

Instead of saving a lot of money, alternatively, you could drive a more expensive used vehicle. You’d probably be able to afford the luxury brand that you normally couldn’t. For some, this means driving their dream car. This is a major life goal for some.

Alternatively, you could spring for all types of upgrades. This can be great if you get safety items like driver assistance technology. But you could also get higher levels of trim or luxuries like a fancy speaker system.

Used Cars are still Great Vehicles

Used cars used to be awful. The common saying was that you bought someone else’s problems. They were very unreliable and required a lot of maintenance. Often the savings weren’t worth the pain.

Over the decades, used cars have improved tremendously. New technology (particularly robots and computers) has boosted manufacturing capabilities and reduced errors. Cars last much longer now. They are reliable and do not require as much routine maintenance checks as before.

So if you haven’t looked at a used car in a while, be aware that the product has completely changed. You don’t have to worry about buying a lemon that is the bane of your existence.

Some costs are lower

Owning a used car is all about saving money. What’s great is that there are even more ways to save. In particular, used cars have a lower car insurance rate. Also, renewal fees at the registry are less.

Less stressful

A used car has already gone through a few years of use. A ding in the parking lot is less likely to stress you out.

Meanwhile, a mere scratch on a new car is sure to ruin your day.

Benefits of a New Car

Leasing Option

You have the option of leasing with new cars. Many people like leasing because you get to drive a new car every few years. This is when they’re relatively trouble-free and also covered by the factory warranty.

Advanced Technology

New cars have access to the most advanced technology. Today, a big category is driver’s assistance technology. Most road accidents occur due to human error. Your new car might warn you of an obstacle or even automatically activate your car’s breaks.

Newer cars have the better fuel economy. That’ll save money at the gas pump and is also great for the environment.

Peace of mind

The new car smell brings peace of mind. As the only owner, you know the history of your car and everything that has happened to it. If you buy a used car, you buy several years of unknown activity with it.

Nothing will completely settle the new versus used car debate. There are pluses and minuses to each.