When purchasing a vehicle, buyers are often stuck between buying a brand-new or used car, which can be affected by many factors. This is one of the most daunting tasks for purchasing a vehicle. Getting stuck between these two choices will leave you in a dilemma that can only be solved when you weigh the pros and cons of each option. When someone is on the verge of purchasing a car, one of the first questions they have to find an answer to is whether it’s ideal for them to buy a new one or a used one. Your decision should not be made on sentiments, and that’s why you must consider some of these factors carefully before deciding whether to buy a new or used car.
Your decision goes beyond picking the manufacturer and the model of the car you want. That’s not to say everyone will get to go through the dilemma of choosing between a new and a used car. Some folks don’t naturally like “used anything”, so they’d rather stick to new vehicles when it’s time to purchase. This may result from personal experiences or tastes for new things because they don’t have to worry about history. Whatever reason people may have for always wanting new things, it’s not always an easy decision, especially when you’re on a budget. Pricing is one factor that makes you think twice about the options you have at your disposal before making your big move. All these things must be considered before settling for your ideal choice.
While purchasing a new car may appeal to most people because it comes with a better warranty and the latest technologies, buying outrightly may be challenging for many people, which is where the thought of opting for a used car comes in.
If you’re stuck between purchasing a new or used car, below are some pros and cons to help you make the best decision.
Pros of Buying a New Car
Zero History
One of the greatest advantages of purchasing a new car is that you don’t have to worry about history. This is the exact opposite of what happens when you invest in a used car. You begin to worry about whether or not the previous owner did enough periodic maintenance or if they had accidents with the vehicle.
With a new car, you’ll be saving yourself the stress of going through that mental journey of taking many guesses, prompting lots of ‘what ifs’ in the process. Since a new car comes straight from the factory to the dealership, there’s no such thing as history, and in addition, you get standard warranties for up to 5 years/100,000km.
The journey starts with you, which is why many people often opt for new cars. They don’t want problems springing up in the future, leaving them to question their decision to purchase a used vehicle in the first place.
Easy Access to Auto Finance
It is easier to secure an auto loan to purchase a new car than to get a used car. Lenders always want to ensure you have great collateral before giving their money out to you. Let’s face it; new cars are not as valuable as used cars. The collateral value of a used car is nothing compared to what a new vehicle will get you.
Lenders are aware of the risk involved in lending people money to purchase used cars, which is why they always slam their loan deals with high-interest rates because there is a higher risk of not being able to pay back the money in full.
Access to the Latest Technologies
One thing a new car promises to offer is advanced technology. Suppose you want all your safety features, comfort, and performance to be the latest. In that case, you should consider purchasing a new car. Although in some cases, you may find a recently bought new vehicle seller putting their vehicle up for resale, usually due to emergency financial reasons.
You’ll get to enjoy the latest technologies in such cases. Cases like that are not the most common, and it is only likely to happen 1 out of 20 times, so you don’t want to take chances.
Deals, Deals, Deals
When shopping for a new car, you won’t ever struggle to find unique car deals because automakers and auto dealers are always looking to offer special discounts on models that are not moving as fast as their best-selling models. With some of these deals, you can save thousands of dollars. It is typically easier to get new car deals than used car deals because used car sellers are already parting ways with some money.
Self-Satisfaction and Prestige
There is generally some self-satisfaction that comes with being the first owner of something, and the feeling is no different when buying a new car. Also, however odd it may sound, you’re ten times more likely to boast of purchasing a new car than when you bought a used one. Some people are so concerned that they let it affect their decisions, which is understandable because people want to feel good about their purchases.
Cons of Buying a New Car
High Initial Cost
By default, new cars are more expensive than used cars. If you don’t have high credit scores to qualify for the incentives that come with new cars, you’ll be forced to either cough out the money or opt for a used car.
According to KBB, an average new car costs around $37,000, with an average used car costing around $20,000. Suppose you consider the costs of registration, insurance, and other costs involved when purchasing a new vehicle. In that case, you may be put off completely.
Low Resale Value
The moment you purchase a new car, it begins to depreciate greatly. Depending on the make and model, around 10% of a new car’s value disappears when you drive it out of the showroom, and another 10-15% is lost by the end of the first year.
If you purchase a new car now and put it up for sale the following week, you will lose thousands of dollars despite the vehicle being only a week old. That’s not to say that used cars sometimes depreciate. However, a used car’s resale value is much higher than a new car’s resale value.
Pros of Buying a Used Car
Easy Access to Vehicle Information
Suppose the used car you’re looking to purchase has been on the road for a few years. In that case, you can easily access the reliability record of the vehicle online. This keeps you informed about what models to avoid because they may be unreliable or more expensive to maintain in the long run. Access to vital information like this will help you make the best choice when purchasing your ideal used vehicle.
You Simply Pay Less
Firstly, a used car doesn’t cost as much as a new car, but that’s not the only thing that makes a used car better than a new car in some cases.
When you consider other costs like insurance, taxes, and other things, you may not just wish to get a new car, especially when you’re on a budget. While purchasing a used car on loan may attract a larger interest rate, you can easily fit the payment into your monthly budget.
Higher Resale Value
Compared to the depreciation hit taken by new cars, used vehicles don’t depreciate as much as new cars. Generally, depreciation is something every car owner has to deal with. Still, the hit takes a different route with a new car.
If you’re purchasing a used car, you’re letting the owner of the vehicle take the depreciation hit by selling less than what he bought.
Easy Access to Vehicle History
It is worrying about wanting to purchase a used car without having access to the vehicle’s history. For many reasons, this was a big issue for those who preferred to buy a used car. Things have changed greatly in the modern world, as you can now easily access the history of the used vehicle you’re looking to purchase.
Checking a car’s history can help you avoid performance and safety issues in the future, and it is, of course, one of the few useful ways to determine the value of a used car.
Cons of Buying a Used Car
Reliability Issues
The biggest downside of buying a used car is that it might not be as reliable or that you may need to do more repairs. You wouldn’t know how the owner treated the vehicle or why they decided to sell it. In many cases, there are hidden problems you will have to start dealing with in the car after a few months or years of purchasing it.
No Warranty
One of the pros of investing in a new car is that it is more than likely to come with a standard warranty of up to 5 years or 100,000km. In most cases, the same can’t be said about used cars, except you go out of your way to purchase a warranty which comes with extra money.
Without a warranty, whatever repairs you make with your vehicle will have to go from your pocket. You also have to consider the major components of modern cars that can cost thousands of dollars to replace.
