Should You Buy a New or Used Car?

Car showroomBuying a car involves making a series of decisions, especially since the choices you make will make a huge impact on your finances. These include choosing the make or model as well as determining which between a new and used vehicle is more feasible. Here’s a guide to help you:

Buying a new car: Pros

A new car typically comes with a warranty, meaning that most new vehicles require fewer repairs in the first couple of years. Also, most lenders provide financing at diminished rates for new vehicles. Therefore, you will need to pay less throughout the duration of the loan.

Getting access to the latest technology is another reason why people go to auto dealers like weberdealers.com for new cars. Advanced technology often translates into lower emissions and better gas mileage.

Cons

Depreciation is the biggest drawback of buying a new vehicle, and you will start losing money on your car immediately after driving it off the lot. Money lost through depreciation of cars is not recoverable. So it makes little sense to purchase a new automobile unless you can afford to lose the money.

Buying a used car: Pros

Since a substantial percentage of car depreciation occurs within the first three years of ownership, you might not lose much money if you decide to purchase a used car. In essence, you will be allowing someone else to bear the loss of depreciation. This will allow you to resell the car for almost the same price you bought it after a few years.

Buying a used vehicle will also allow you to save up and pay the entire price money, which means that you won’t have the stress of servicing a loan.

READ  How to Plan for that Perfect Family Vacation

Cons

The biggest drawback of buying a used car is potential unreliability, and you might have to execute major repairs on it.

Your decision on whether to buy a new or used car should be informed by the fact that purchasing a car is not an investment; it is bound to depreciate with time. Therefore, you ought to make careful considerations on all your options before making a decision.