First-time car shopping: New or used, the pros and cons

First-time car shopping: New or used, the pros and cons

When it comes to buying a car, one has a variety of choices available. One not only needs to make a choice on the model and make them prefer to buy but also needs to decide on whether they’ll buy a used or a new car. While it may look like a decision that’s just simple, it can have a significant difference in your finances for the next number of years. Buying a brand new car is always a dream that almost everyone has; it’s shiny, looks clean, and looks wonderful. However, buying a second-hand car can help you save quite some cash; you’ll make savings in various ways, such as avoiding paying premiums for being the first owner of the car. It is also crucial that you consider buying a car from reputable car dealers and companies, reviews will help you know some trusted dealers. New cars also have their advantages, and thus, as a buyer, one has to carefully assess their preferences before making the appropriate decision. The two options, buying a new car or a used one, are assessed to help a buyer make the correct decision.

Benefits of buying a new car

One of the major benefits of a new car is that a warranty covers it. The fact that they are new also means that during the first few years of the car’s life, the car will need very minimal repairs and so you’ll only focus on maintaining the car. Some dealers may play a crucial role in saving costs as they offer financing at low-interest rates. These are the most basic advantages that you’ll get from purchasing a brand new car. Additional advantages include that new cars come equipped with the latest technology, which means that one will find cars with lower emissions and better gas mileage. One will also choose aspects such as buying a hybrid vehicle and thus greatly reduce the transportation amount spent each month. With the latest technology, the new cars will also offer enhanced functionality, such as hooking up with your phone with more ease.

Drawbacks of a new car

A major drawback of buying a new vehicle is that you lose a huge amount of cash as soon as you drive it out of the lot. Brand new cars experience a huge depreciation rate in their initial two to three years, meaning that by getting a brand new car out of the showroom, you’ve thrown away some amount of cash that you’ll never recover. Professionals in finance argue that it doesn’t make much sense to buy a new car unless you have some cash that you don’t mind losing. Some car manufacturers also tend to make modifications in the designs of their new cars; if this happens and the modification is on key areas such as the engine design, you might have problems getting the spare part as the car ages.

However, if you are buying a company car, you could opt to buy a truck, especially in constructions. Here, the vehicle has more value than just bringing you from A to B, you need it to do your work so buying something that is new, might be more beneficial due to warranty and tax deductibles. Also, if you are to buy a truck for business purposes, buying parts for replacements or re-styling could be a way to increase your deductibles and so increase your net income. Wondering where to get these parts? Have a look at companies like TruckProUSA, you might like what you find!

Benefits of buying a used car

One saves quite a huge chunk of cash by buying a new car as they let someone else take the largest depreciation hit on the cars. You may also sell your used car for the same amount of money you paid for even in the next few years after buying it. One can still find good financing options when buying a used car at credit unions or your local bank, and since one isn’t losing cash in depreciation, you may come out having paid a minimal amount as interest. One can also find out that insurance companies may have insurance rates that are lower on used cars. Insure4aday is an insurance site worth giving a look and finding out their rates.

buying a new vehicle

Drawbacks of a used car

Reliability has been raised as a major issue with used cars, with the cars needing to have more repairs done. However, there are options to order car parts online, and one can try buying more affordable parts. Buying a used car also means that one may compromise with the color to have better mileage and history. One of the major tips for buying a used car is that one needs to be more patient and flexible as they hunt the car.

In conclusion, after considering these two options, one will have to settle on one. If you are for saving money, then go for the used car option. On the other hand, those with some good cash and wish to save on repair and maintenance costs in the first few years should opt for the new car option. A good rule of thumb is that buy a car that you’ll be able to pay off in a period of three years completely.