April 3, 2017 | Posted by: Moneymax | Car Insurance
April 3, 2017
There’s usually an argument over whether or not one’s first car should be a brand new or used car. The argument usually involves used cars being lesser than new cars, which isn’t always the case. The argument against used cars is usually that it’s an unwise spending decision, because the car depreciates in value way more, or that new cars have better technology.
If you’ve been debating whether you should buy a new or used car, here are a few things you should consider in defense of either argument.
There are a lot of advantages to getting a new car. For starters, it doesn’t have accident record, there’s zero mileage on the speedometer, there’s no wear or tear on it at all.
New cars will have all the latest that technology has to offer, from better engines and miles to the gallon to having limited autonomous driving. A new car will also adhere to the latest in car safety regulations, and it can even come with car insurance apart from the CTPL. Some automobile warranties cover at least three years, allowing you to save on repairs and other services for quite some time.
Read More: Guidelines in Buying a Brand New Vehicle
Used cars tend to be less expensive than if you bought a new car, owing to a combination of depreciation and other people updating their cars for something better or more functional. By definition, a used car only means that there’s a bit of wear and tear in the vehicle, or that its been put through its paces by long drives.
Buying a used car can also mean that you’ve got a stricter preference, or that the model you want hasn’t been in production for some time. Car aficionados fall into this category, more often than not. Used cars are also cars that may have been repossessed, making them a little cheaper than if you bought them completely brand new.
Read More: Guidelines on Buying Used Cars
Naturally, there are going to be advantages and disadvantages for either choice. New and used cars can be financed by a car loan, but new cars have more options when it comes to financing than a used car purchase might.
It’s easier to buy a new car than it is to buy a used car, because there’s less effort put into inspecting a new car, it’s new, making it free of imperfections all around. A used car, however, feels less like a chore to maintain – think of what would hurt more, a dent in your new car, or a dent in a car that’s three years old.
The age of a car is also a factor in depreciation. You might not think about it too much, but a brand new car depreciates quickly. The second you drive off the lot, a new car depreciates as much as 20%. You lose another 10% in the first year following that. Used cars don’t depreciate as fast, meaning a car you buy for half the price of a new one may depreciate as little as 5% in the first year of you having it.
Buying a new or used car eventually becomes a question of preference and whether or not you can afford it. While there are financing options for buying a new or used car, it’s ideal to weigh the arguments above to help you make the best possible decision.
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