When deciding to buy a car, the choice boils down to whether to buy a new or a used car. You could either opt for the latest features of a new car or the affordability of an old car. Buying a new car is tempting, but you need the money upfront to make the purchase. Buying a used car saves a considerable amount of money, but it can increase maintenance costs and repairs later.
1. Advantages of buying a new car
- New-car shopping is easier
Buying a new car does not require a quality check as it is unused and in top-notch condition. There is no need for a mechanic to perform an assessment. As you already know what the quality of the car is, figuring out the price to pay becomes easier, even though the negotiation can be tough.
- More financing options
Car manufacturers offer a plethora of lucrative incentives, like cash rebates, to attract buyers. The same applies to car loans as they involve better rates of interest for new cars. This means you might end up paying thousands of dollars less than the sticker price.
- Advanced technology
Every new year brings with it the launch of a new line of cars by different manufacturers. These new cars come with new features for safety, performance, and comfort. You can have access to these advanced features instantly in new cars, but you will not get the same with old/used cars.
- Peace of mind
In the debate of buying new vs. used cars, understand that a new car will always offer more reliability as compared to a used one. Used cars are more prone to malfunction. Additionally, if your new car breaks down, you can get it fixed through the factory warranty for free during the warranty period.
2. Advantages of buying a used car
- Lower car insurance rates
Used cars have a lower market value, which is why they are cheaper to buy. When a vehicle has a lesser value, it is easier and cheaper to insure with comprehensive and collision coverage.
- Cheaper registry renewals
Purchase of any vehicle, old or new, requires registration with the traffic authorities. This registration involves costs that depend on a long list of factors. However, the fact of the matter is that the costs involved in the registration of a used car decline every year.
- Buy a better car
As you are paying approximately 30% less than the market price of any new car, you can afford to spend more. Instead of saving any surplus from the funds you have to buy a car, you can buy a car of a better class. This can also sometimes mean that you can purchase used luxury cars.