Buying a New Car or Used Car?

By | November 27, 2013

Purchasing a car requires a decision to be made, whether to buy a brand new car or a used car? Both new and used car has its own advantages and disadvantages. To help you in taking decision, consider the following pros and cons for new as well as a used car.

Buying a new car
There are many reasons why people prefer buying a new car:

1) Peace of mind: If serviced properly and regularly, your new car will remain mechanically sound for many years. Moreover, new cars are less likely to breakdown when comparing to used cars. Nowadays, car manufacturers are offering competitive warranties that extend from three to five years. This alone can make a brand new car an appealing option.

2) No hassles of maintenance: A new car does not require maintenance for at least 1000 miles and just require changing oil. However, mostly maintenance charges are covered by the manufacturers. Moreover, a new car need not require changing tires, batteries or brakes during first few years of purchase.

3) Latest features: New car comes with latest features. If these are on top priority for you, then your decision to purchase a new car is worth. For example, old model cars lack latest safety features and fuel economy, which nowadays every new car has.

4) Fuel economy: This feature in new cars will save you with lot of money. For example, if the car is new, the more fuel efficient it will be as manufacturers every year are working to improve the fuel efficiency of their cars.

Yet, new cars depreciate over time and its effects are mostly felt immediately in first few years after the purchase. New car loses about 40% of its value in first three years, at which depreciation point starts to slow down. This is the reason why many people prefer buying a few year old cars.

Buying a Used Car
Shopping for a used car instead of new car is less glamorous. However, buying a used car can save you with lot of money. There are many used cars available ranging from near new model car to well-maintained older vehicles. Consider the following pros and cons before buying a used car:

Pros

  • Used cars avoid depreciation faster: new car commit you to pay the price of the car that will be depreciating faster in first few years after purchase. For avoiding this, used cars can be amazing. If you purchase a pre-owned car, then you need to pay for the car, which will depreciate slowly.
  • Getting more for less: Used car allows the buyer to enjoy the benefits of a nicer car at low cost.
  • Buying a used car allows you to drive home immediately: In case of new cars, you need to order for the car and wait for its arrival that might take some time, which you might not prefer if you want it urgently. However, if you are buying a used car, you can drive the car home immediately.

Cons

  • Lack of latest safety features: Many old or used cars lack basic feature like power steering. These vehicles lack latest features like air bags, antilock brake system etc.
  • No warranty: A used car does not offer warranties, but depending on how old the car is, the car may be remaining with original warranty of factory.
  • Issues of repair: You need to spend lot of money on the used car. A used car succumbs to more wear and tear. Maintenance is required in order to upkeep the car.
  • No access to the vehicle’s history: When you purchase a used car, you do not have access to the car’s history. Some used cars may have had number of owners, and each owner may not be aware of how the car was maintained, serviced and used by other owners.