To buy or not to buy a new or used vehicle

If you’re trying to decide whether a brand new or used vehicle is right for you, the below pros and cons will either enhance your existing gut feeling or completely throw your train of thought up into the air. Either way, let’s get stuck into the pros and cons for both!

NEW CAR

PROS

  • You can choose to tailor the spec of the car to your liking, heated seats? Yes, please!
  • Sometimes new cars are offered with perks, such as one year’s free insurance.
  • A brand new vehicle will usually be covered under warranty for up to 3 years.
  • With the technology of cars evolving, modern vehicles can be more economical on fuel and kinder to the environment. These are important points to consider if you care about nature and your money.

CONS

  • You probably won’t find a brand new car below $5000, and even this might just only scrape you a tiny hatchback.
  • A common point established is that new cars lose value rapidly once they leave the forecourt and in their first year. This loss can be anywhere around 35% of the cars retail price.
  • If you are deciding to purchase with finance, this will only exacerbate the financial problem by adding on interest, and elongating the term before you will actually own the car. This is vital to consider if you care about outright ownership.
  • There is a risk with purchasing a brand new car on a loan or finance, as you have committed to a contract. So, if you lose your job and are no longer able to pay, providing the finance and loan are secured against your car, the bank/business will take the vehicle.

USED CAR

PROS

  • Less monetary demand upfront, cheaper alternative to a brand new car.
  • You’re likely to have lower insurance premiums as the value of the vehicle will be cheaper to replace if the car is written off during an accident. This will be the least of your problems if you or another party or injured, in which case you should contact The Derrick Law Firm for support and advice.
  • Old cars lose value slowly, and past a decade, the car’s value will remain relatively stable.
  • It’s potentially easier and more affordable to own the car outright.
  • You can get a good warranty if you haggle, this usually covers the engine and gearbox.
  • If you damage an old car in an accident that you own outright, the loss you will incur on the car is smaller in comparison to if you bought a newer car on a loan/finance.

CONS

  • If the environment matters to you, older cars are argued to be less environmentally friendly in comparison to new cars.
  • The car could cost a lot depending on what repairs crop up, such as worn brakes, clutch, gearbox and engine issues.
  • Unless there is a full service and repair history, there is no real awareness of the state of the internal parts of the car, whereas with a new vehicle you know that everything has only been used by you.
  • There is no warranty if you purchase an old car from a private party.

Hopefully, the above has helped point you closer to the car that’s right for you in consideration of your own circumstances. For instance, if you’re financially secure, your a confident driver who takes the defensive driving approach when you’re traveling, have driven for a few years, have low insurance premiums and see a new car as a long term investment, this may be the best option for you as your probability of you losing the car during an accident is lower and you can comfortably afford the finance payments. Your car buying potential is of course restricted by your affordability, so this must be dealt with first before you commit to any car.


Photo Credit: Copyright 2019 Angel Mosqueda / Car Fanatics Blog

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