Do you need to change the car and are you thinking of moving towards a used car or new car? When we want to buy a new car, many of us ask ourselves this question: should I buy it new or used car? The prices of new cars are too high, but you don’t want to buy used cars without guarantees? Cars N U has compared for you the advantages and disadvantages of these two ways of buying car. In today’s short guide, we will discuss all the advantages and disadvantages you can have with the new car and used car. So how do we go about choosing?
A brief comparison of new and used cars will help you understand the two parallel markets’ differences.
Pros of new car:
New cars first and foremost have a manufacturer’s warranty of at least two years. A factory defect can always happen, and the coverage of repair costs, even the most expensive ones, represents an undeniable advantage.
It should also be considered that the latest new cars are safer as they are equipped with innovative safety and driver assistance systems.
No bad surprises:
With the purchase of a new car, you will be the first to use the vehicle, and you will not need to rely on expert appraisals, sometimes too expensive.
The purchase of a low-emission vehicle will allow you to access a series of government contributions, which, among other things, provide for the exemption from paying the road tax. Take this into account when making your own cost of ownership calculations for a car.
Cons of new car:
The real big problem with new cars is the high price. And what’s more, the devaluation after the first two years can reach up to 20-25% of the initial price.
According to experts, depreciation occurs in the first 2 to 3 years, which means you throw away your money that will never get back.
High insurance cost:
If you have decided to buy a new car, then get ready to pay more sales tax and car insurance costs. New cars usually come with higher insurance costs.
Pros of used car:
Low insurance costs:
Most car insurance firms assess your car market value to determine their insurance rate. If you own an expensive model, they will give you hefty compensation in case an accident or theft occurs. Generally, used cars attract low insurance costs.
Usually, all cars depreciate during their lifespan. Some models have a higher depreciation rate than others. Often, new vehicles may lose over 40% of their initial value after a short time than used cars.
Generally, it’s more enjoyable buying used cars than new ones. With used vehicles, you get a limited number of models to select based on your financial capability. However, with a similar amount of money, you can get a favorite brand of a used car.
Cons of Used Car
First of all, the choice of a second hand car can be constrained by the type of cars on sale at that time, so that perhaps they do not fully satisfy the wishes of the buyer of the model, color, displacement, etc. Therefore, it is not always possible to find the car of your dreams, and you are satisfied with the one available.
State of the vehicle uncertain
Moreover, a fundamental aspect, buying a used car does not have the full knowledge of its past, and therefore in what real conditions it is presented to the buyer. So you have to be meticulous when checking it and make sure that the Km marked on the odometer is actually those traveled.
New Car vs Used Car: which is more profitable?
When you plan to buy, a used vehicle is undoubtedly the cheapest, and it is even its main asset. The new vehicle loses up to 20% of its value as soon as it leaves the dealership. In the first year, a new vehicle can lose up to 25% of its value. After four years, half of the investment is gone. Therefore, if your purchase criterion is the initial price, you should favor the purchase of a used car. To be honest, the auto budget is not based on the purchase price alone. By integrating fuel consumption, maintenance costs, and insurance costs, we are closer to the real cost.
If you want to buy car but don’t know which one is best for you, We can help you settle the used vs. new vehicle debate. So what are you waiting for? Contact us today!