Should I Buy a New or Used Car?

WantāŸtoāŸbuyāŸaāŸnewāŸcarāŸthisāŸyear?āŸBeforeāŸmakingāŸtheāŸdecision,āŸknowāŸhowāŸmuchāŸyouāŸareāŸwillingāŸtoāŸspend,āŸwhatāŸexactlyāŸyouāŸareāŸlookingāŸforāŸināŸaāŸcar,āŸand whether you need to buy a new model or a used car. 

A used car offers several significant advantages as it typically holds value better and costs less than a new car. However, when you buy a new car, you get a long-lasting warranty, customization opportunities, and an assurance that everything is in proper working order in the machine.  

Continue reading for a breakdown of buying new vs used cars, where you can learn how to find a vehicle that suits your taste, saves money, and holds its value. 

The dilemma

AāŸcarāŸisāŸaāŸcommitment,āŸandāŸwhenāŸbudgetingāŸforāŸone,āŸitāŸmayāŸbeāŸhardāŸtoāŸdecideāŸwhetherāŸyouāŸwantāŸaāŸnewāŸmodelāŸorāŸaāŸusedāŸone.āŸ

Comparing cars to your needs as a future owner is a must.

It's crucial to know how the car will serve you in the long run through the changes you might undertakeāŸandāŸwhetherāŸyouāŸareāŸfinanciallyāŸpreparedāŸfor this kind of commitment.

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American money for the purchase of a car or spare parts for a passenger car or money taken on credit for the purchase of a personal carBut there are many other things you have to do before buying a car. It's not just an issue of choosing brands but also looking into the future.

This kind of purchase is an important one that will impact your life in the short- and long-term.

The cons of buying a new car

Buying a new car is an expensive investment and not precisely a profitable one.

They depreciate very fast, and if you decide to buy with a loan, the additional cost will not be included in the price of the car when you sell it in the future.

ThereāŸareāŸmanyāŸcar financing options nowadays, butāŸif you have problems keeping up with the installments, there's a chance of your car being overtaken by a lender. 

Also, an adverse loan history will make it harder for you to get another loan.

Higher insurance costs are a given for a new car

The bank and the dealership will require you to purchase full insurance until the moment of paying off the loan, and that final cost depends not only on the car model but also on the driver's history.

And then comes the depreciation.

this is how cars depreciate

The car depreciation rate is estimated to be 10% the moment you drive out of the dealership, and it only keeps adding up.

In general, car prices depreciate at a 10% rate per 12-month period after the purchase.

The Pros of Buying a New Car

When buying a new car, you can precisely choose the brand, model, color, and equipment it comes with.

You can decide beforehand what kind of accessories you'll want without worrying about checking everything in a used car. 

For that reason, it's much easier to buy too. 

New cars are under a factory warranty, which means you will have a vehicle with a clean history straight from storage.

There will be no problems with previous accidents and repairs, insufficient maintenance, or hidden surprises under the hood.

Most new cars have more safety features than used ones. 

They also come with advanced technologies and emission standards, which means they might have greater fuel efficiency and be better suited for the environment.

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Control panel car air conditioner dashboard console Technology in a modern carAnd the incentive to buy a new car usually comes from dealerships themselves. 

Prices can be a deterrent, but new cars come with better conditions, special offers, attractive financing, and payment options that suit everyone.

And who doesn't like that pleasant "new car" smell?

The Cons of Buying a Used Car

Besides the price of the car itself, you need to be ready for a used car inspection.

GettingāŸa professional to inspect the car before you buy it, willāŸgiveāŸyouāŸan idea of what repairs and maintenance the car will need down the line. 

A preowned carāŸis generally less reliable than newer models.

And dependingāŸon the vehicle, you might have to spendāŸmore on repairs, especially if it's no longer covered in the warranty. In that case, knowing what kind of maintenance you might be in for comes in handy.

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