You are probably thinking of buying a car, but you have a hard time thinking if you should buy a new or a used one. There are so many factors to consider before you make that decision. Remember the vehicle you buy will be your property, and you will inherit everything that comes with it including its problems or advantages if any.
Pros of buying new vs. second hand
1. Easier shopping. Shopping for a new car is so easy. Evaluating the condition of the car is not a factor just choose the car you want, negotiate and drive away.
2. Reliability. A new car is more reliable than a used one and that one is a fact. If the car breaks down or something wrong happens to it within the warranty period, the car gets repaired for free.
3.Advanced features. A new car has advanced technology as compared to second-hand cars. Some of the features in new cars will take long before you see them in a used one.
4. Prestige. One enjoys the prestige of a new car and if I can put it lightly, you can’t hear many people bragging about a second-hand car they just bought.
5. Better financing options. New car loans often have better interest rates and automakers have plenty of deals to offer to lure in buyers. This means you are likely to pay less than the sticker price.
Cons
Depreciation. Immediately after you buy a new car, it loses 20% of its value when you drive off. After one year, the wear and tear and mileage can take that up to 30%. Depreciation sucks money out of your pocket and you will only find out when you have to sell or trade in the car.
Lower car insurance rates. The car is worth less than a new one and that means it will cost you less to insure.
Cheaper registration renewals. It costs less to register a new car, and the price goes down every year.
Move up to a better car. When buying another car, you can be able to move to a better and luxurious car. This move can see you save up to 30% as compared to buying a new car.
If you are wondering whether it’s worth purchasing a new car as compared to a second hand one, the cash you have will be a huge factor and the other things will follow. Gauge yourself and see if the money you have then consider these factors before you go ahead and buy a car.