Which is the Better Option to buy: New or Used Car?

January 1, 2020

When times comes to buy a car, you have many choices available to you. Not only do you need to pick the make and model of your car, you also need to decide if you want to buy a new or used car. This is an important decision and it can make a big difference in your finances over the next several years. It is important to realize that buying a car is not an investment your options may also be determined on whether or not you qualify for a loan or if you need pay in cash

Used Car Advantages:

(1) The biggest advantage of buying a used car is that you let someone else take the biggest depreciation hit on the car.

(2) You may be able to sell your car for nearly the same amount you paid for it in the next few years.

(3) You can still find good financing options through your local bank or credit union.

(4) When you buy a used car, it is easier to save up and pay cash.

(5)Insurance rates may be lower on a used car as opposed to a new one

Used Car Disadvantage:

(1) The used car may not be as reliable or you may need to do more repairs on it.

(2) The used car led to compromise on the colour of the car.

New Car Advantages:

(1) The advantage of buying a new car is that you are buying a car that generally comes with a warranty.

(2) The dealer may also offer financing at a lower interest rate, which can reduce the amount of interest you pay over the life of the loan.

(3) The new cars will have the latest technology, which will mean that you may find cars with better gas mileage and lower emissions.

New Car Disadvantages:

(1) The biggest disadvantage of buying a new car is that you lose money on it as soon as you drive it off the lot.

(2) A new car takes its biggest depreciation in the first two or three years.

(3) Financially it does not make a lot of sense to buy a new car unless you have money you do not mind losing.

(4) If you buy a car that is a brand new model. There may be a possibility that manufacturers can switch engines or alter the design. It led to a problem of searching that particular engine.