A New or a Used Car...Which One to Choose?

A New or a Used Car...Which One to Choose?

Are you looking to buy a car? The first thing that may have crossed your mind is the cost of ownership of the vehicle. It is largely determined by your selection between a new and a used car. Both these options are viable and lucrative for their own reasons. A new car is definitely tempting because of its high-end features and stunning appearance. On the other hand, a pre-owned vehicle is considered to be a practical choice due to the cost savings that it allows. If you are in this quandary, read these pros and cons of both options before finalizing your decision.

Why Choose a New Car?

The first reason that compels buyers to invest in a new car is the manufacturer’s warranty that comes with a vehicle. The initial years are hassle-free with peace of mind. You need not spend on repairs and maintenance of this car because these costs are usually covered under the warranties offered by the manufacturer. Some dealers also provide warranties that extend up to five years on a new purchase.

A new car possesses recent technologies and it offers much better mileage than a used car. It enhances the driving experience with safety and convenience. You can get it customized according to your preferences of wheels, color and additional features. The financing and loan options are also better with this choice.

Downsides of Buying a New Car

The depreciation incurred immediately after purchasing the car and driving it off the lot is the biggest downside of investing in a new car. Its value falls drastically due to the cost of depreciation. You will lose almost 20-25% of its value for depreciation by the end of the first year of ownership.

However, there are many additional costs as well that increase your investment in a new car. The sales tax and registration fees are higher for this vehicle. Also, it attracts higher cost of insurance when compared to a used car.

Why Choose a Used Car?

Savings are the most tempting reason to opt for a used car. You don’t have to incur the initial depreciation and the sales tax is also much lower on this vehicle. When buying the latest one-year old model as well, you will account for 20% lesser depreciation because this cost is already factored in its price. The affordability of a used car is definitely high. You can purchase your dream vehicle with advanced features at a fraction of the price tag carried by a new vehicle in a showroom. There are ample reviews and resources to help you make informed decisions about buying the best performing used car. You can also enjoy lower insurance costs due to lesser replacement cost.

Downsides of Buying a Used Car:

Buying a used car is a pragmatic decision but it requires careful analysis of some important factors. You need to know about the history and performance levels of the car. It may attract more costs of repairs than you estimated. The overall costs of owning this vehicle may become higher due to these factors. But, you can avoid them by choosing a certified used car accompanied by a dealer’s warranty and additional services.

Consider these points and shop around for the best options that suit your buying criteria.