Should I Buy a New or Used Car: Things You Need to Consider
Once you’ve saved up for your first car purchase, you’ll always ask yourself, “Should I buy a new or used car?” This decision is never easy and is always a concern whenever you’re choosing between getting a new or a used car. From driving feel to brand and trim level, there are various factors that can be a deal breaker when it comes to getting your next car.
Always weigh the pros and cons of your ideal car before you look at specific models, walk into a dealership, or start shopping online. This blog will talk about everything you need to consider when getting either a new or a used car.
Is it Better to Buy a Used or New Car?
Pros of Buying a New Car
- Everything is brand new: Purchasing the latest model year of a car means it can have the most up-to-date specs and features that can carry over to other models and trim levels. These can range from the latest infotainment systems to state-of-the-art safety features that older models simply won’t have. And, after all, who doesn’t want that new car smell?
Moreover, you get peace of mind knowing every component is in its best condition. You are assured it doesn’t have any rust, cracks, or scratches that can affect its performance. Complications early on are often covered by warranties, so you can fix them in no time.
New cars are equipped with the latest technology, from multimedia and navigation interfaces to audio and video systems. Manufacturers are constantly developing new technologies to make every drive convenient and enjoyable. - Cheaper insurance: Some brand-new vehicles come with cheaper insurance as there is less risk of mechanical failure. It’s best to check the car’s category, high or low-risk, to know your chances of benefitting from an insurance drop.
- Wide selection upon release: The great thing about getting a new car is you can choose from different trim levels that have specific features and specs according to your liking. Do you prefer a manual or automatic transmission? What engine is better suited for your daily lifestyle? What’s the right combination of interior and exterior colors? While these factors may be daunting to decide on, newer vehicle models give you more options to choose from until you find the perfect car for you.
- Better resale value: Some brand-new vehicles can still get you an incredible value should you decide to resell them.
However, that depends on the brand you’re getting. If you're lucky, you can sell it for 50% of the original purchase price. - More environment-friendly: Cars need to undergo emission tests to see whether or not they are road-worthy. The latest production car models take these factors into consideration, which is why getting a brand-new car is often better for emissions.
The Federal Clean Air Act was amended in 1990 to reduce air pollution greatly. This urged the Environmental Protection Agency to create a set of emission standards to minimize the number of air pollutants released by vehicles. Cars built after the nineties adhere to the amended regulations.
However, the benchmark drops for cities and nations to meet these emission targets annually. Older vehicles, like those from the nineties, may need certain modifications and tests to meet modern emission standards.
Cons of Buying a New Car
- Costly downpayment: Car loans often require a large downpayment relative to the initial price of your vehicle. New cars are generally more expensive than their used counterparts, resulting in hard-to-afford down payments, monthly fees, dealership costs, and the like.
- Expensive upfront payment: In addition to the costly downpayment, the initial fee is also costly. Most modern brand-new vehicles can have upwards of $20,000 of upfront fees.
- Depreciation: New cars lose their value the moment you drive them off the lot or dealership.. A new vehicle will immediately lose around 20% percent of its value in the first year and will continue to depreciate in the next 10 years.
- Higher insurance cost: New cars are also more prone to getting stolen due to their high value, demand, fresh parts, and overall pristine condition. This results in more expensive insurance to cover unexpected complications.
Pros of Buying a Used Car
- Significantly more affordable: No matter how you look at it, used cars will always be more affordable than brand-new ones. This makes the question “should you buy a new or used car” much easier. You can use your leftover budget to upgrade the specs and customize the rest of your ride.
- Great for short-term use: If you plan to change your car in the next few years and need a ride to fill the gap, a second-hand vehicle could be your best option. It doesn’t come with long-term installment plans and large down payments, allowing you to save for a better model in the future.
- Low credit score: Buying a brand-new vehicle can be difficult, especially if you have a low credit score. The chances are you’ll get declined by every loan agency and auto financing institution if you want to get a brand-new vehicle but have a low credit score.
- Low depreciation: While cars lose value with each passing mile and month, the greatest decline happens when you leave the parking lot. A massive 20-40% decline gets lost right away. However, things are different with a used vehicle, as there is no initial depreciation. Rather than getting a rapid decline, a preowned vehicle would only likely lose up to 10%.
Moreover, you can enjoy a low cost-to-resale ratio as the used car’s new owner. Keeping it well-maintained lets you resell the vehicle for almost the same price you got it. In fact, you can also resell it for a higher price if you have iit customized, upgraded, or refurbished like new. - Phased-out model: You’d also want to consider getting a preowned vehicle because manufacturers already phase out the ride you want. Many drivers prefer these models because they have good reliability ratings and uniqueness, as there would be fewer similar vehicles on the road. In fact, some can become an investment because some collectors will pay good money for rare cars that are hard to come by.
Cons of Buying a Used Car
- Not your first choice: We all have a perfect car in our heads, down to every component and vehicle color. However, with buying a used car, you’ll have to compromise as you won’t be able to tick every box on your checklist.
- Car history: Knowing its history is part of buying a pre-owned vehicle. This includes any replacement parts and records of accidents. It’s best to bring your potential ride to a trusted mechanic for a checkup before you close any deal. We recommend asking the owner why they are selling it first to get an idea of what complications to expect if any.
- Increased maintenance cost: There is no guarantee a pre-owned will perform at its best. After all, its prime years were experienced by its previous owner. You may need to conduct maintenance and repairs over time.
Find the Best Car for You
Have you decided whether to buy a new or used car? Finding the best vehicle for you isn’t easy. You must consider many things, such as budget, style, vehicle performance, etc. The market is filled with various options, either brand-new or preowned. Make sure you find the best ride worth your money that will make you proud of your purchase.
Visit the VIP Automotive Blog to learn more about why you should consider a preowned car as your next ride.