Consumer trends suggest that the sales for used cars have gone up and that of the new cars have gone down. It’s true even for used car parts, but does that mean used cars are the better option? Well, there is no clear winner here. There is no right or wrong answer; whether you should buy a used car or a new one will depend on a number of factors such as your requirements, your aspirations, your financial standing, and your risk bearing capability. Let’s look at how the two compare with regards to benefits and the costs. We’ll go through the advantages and disadvantages of both the options.
ADVANTAGES OF NEW CARS
Some buyers can’t even get their head around the idea of a used car, for them, a new car is the only option. And why not, as purchasing a new car can have a host of benefits. When you buy a new car it comes equipped with all the latest technologies and entertainment options such as Apple Carplay and Android Auto. New cars also have Bluetooth phone connectivity so that you can easily communicate without the risk of being fined. It comes equipped with advanced safety features and navigation technologies. To name a few – automatic emergency braking, blind spot monitoring, intelligent cruise control etc., and these are not limited to expensive models as even the affordable options sport some of these features. Another major buying point is fuel efficiency. The latest models have better fuel-saving abilities than that of the older model of the same car, which can be an important deciding factor in making the purchase.
New car ensures no wear and tear, which means one less thing for you to worry about. The previous owner’s lapses won’t come to haunt you in the future. Then there is the advantage for warranty coverage which almost every new car comes with for the first three years or more, which provide a sort of insurance against high repair bills for the car owners. The same goes for purchasing other vehicles, like a motorcycle. You can often also purchase all your motorcycle apparel and accessories at the same time, which are also often covered under the warranty.
Another point is the ease of purchase. With a new car, you always have an option of finding the exact model you desire, without making any compromises on the options list, trim level, colour etc.. Some manufactures even provide financial assistance or a lease deal for new cars. Even car loans have lower interests on loans taken to purchase new car versus a used one.
DISADVANTAGES OF NEW CARS
One of the main problems with new cars is the cost attached. A new car costs much more than the used model of the same car, and the costs go up for each new model. You also have to pay more on insurance and more on sales tax. Plus, the value of a new vehicle depreciates the minute it leaves the dealership, so if you do the math, you owe the lender a lot more than it’s worth.
ADVANTAGES OF USED CARS
The biggest advantage of going for a pre-owned model is that the previous owner will have borne all the depreciation that occurs in the initial years, and you will be left to reap its benefits. Also, you save quite a sum by going in for a used car. You can budget less for the purchase or buy a better or a fancier model which you could not get if you were to buy a brand new one. This means you can use your Nissan-sized budget to buy a Japanese used car, such as Infiniti instead. Not only this, you can add your desired functionality for much less. The price difference to add navigation features or fancy interiors for a new car is vast as compared to adding the same features to a used one.
You will pay lower sales tax and lower premiums on a used car. And, even the total interest you pay won’t add up to as much as a new car, even if your interest rate is higher than that of a new car. Waiting a few years and then purchasing an older model allows you to see how that model fares in the market a few months from its launch. This can help you pick the right car for your needs.
DISADVANTAGES OF USED CARS
The biggest disadvantage to a used car is that you don’t always know what you are buying. It takes added extensive research on your end to see any underlying problems of used cars, which adds a couple of extra steps in the car purchasing process.
It usually goes as follows: you will have to find a vehicle history report from an agency which will help bring to notice any major auto accidents for that car. You will then have to spend money on an inspection from an independent mechanic to identify any mechanical or operational issues. Another issue is the lack of a warranty if it is an older vehicle, and you may have to purchase an extended warranty to safeguard yourself from any major repairs.
Another point is that you will have to make compromises on certain aspects. You may find the desired model but certain features may be missing or the colour may not be the one you pictured. You may have to let go of a few features or you would be waiting a long time for the exact model to appear on market.
There is a third option, which is one of the ways to safeguard yourself from making a loss at used car dealers or second-hand dealers, which is to purchase a CPO (certified pre-owned car). These are relatively newer cars with good mileage that are sold by the brand’s very own dealership network. These autos go through rigorous inspection in order to meet the stringent criteria laid out by the manufactures. Sometimes they are available at independent dealers as well, but the mark of a truly certified car is the backing of its manufacturer. The price is obviously higher than a used car, but since they can be purchased at a used car price, it’s often a good deal in the long run.