Getting a Car
Getting a car might be one of the biggest purchases that you would likely to make, regardless of the reason why you’re upgrading your car, whether it be a change in circumstances, a need for more space or particular features, or simply that your old car is not up to scratch any more, its common dilemma is perhaps the catalyst for the rest of your decision-making which is, getting a brand new car or opt for second-hand one?
As you would imagine, there are no difficult and quick rules as it all goes down to personal preferences and your particular needs and situation, but there are a few factors you should consider before making the decision. From choosing which make and model you prefer, listing your “must-have” features and of course, setting the all-important budget, getting a new car is not something to be taken lightly. Each has advantages and disadvantages that will impact your budget, the available features and many more factors.
Comparing the Cost of Buying a Brand-New Car and a Used One
By getting a relatively late model used car compared to a new one, you can save a significant amount of money. Potentially, if you have a good idea of what type of car you want, you might also be able to buy a used car that offers more features or a higher level of specification for the same amount of money as the new model. Although you will always pay less for a used car than a similar brand new one, this needs to be weighed up against a number of other factors such as for new cars, it typically comes with a rage of extras like warranty and capped price servicing. Such offers are generally not available for used cars and, as parts and components wear, they become less efficient so you might also find yourself using more fuel or oil in a used car.
The idea of having a new car, with no history if being used by anyone else will give you a peace of mind and a sense of security since it basically means that there are no existing problems that could spring up out of nowhere that a used one can’t provide. While for used cars, the biggest advantage of buying one is that you let someone else take the biggest depreciation hit on the car. You may be able to sell your car for nearly the same amount you paid for it in the next few years as you can still possibly find good financing options through your local bank or credit union. You are not losing the money on depreciation, you may come out ahead of a zero interest loan that you would take out on a new car., depending on the model, your insurance rates may be lower on a used car as opposed to a new one.Alternatively, buying used can be a bit of a gamble. Depending on the age of the car and the distance it has traveled, it might be in need of maintenance. Perhaps more importantly, you will never know how or where it has been driven with certain driving and road conditions often taking a greater toll on a car’s mechanical systems that may end up costing you money. What comes always with this is what you might expect to pay in future running costs. Another factor to consider is what you want in your car. Good thing about buying new is once you have selected the model, you can specify exactly what options, trim, accessories and color you want and are not limited to what particular vehicles might be on the dealer’s lot.
Finally, there is the beguiling emotional appeal of buying a new car that is exactly what you want. It’s new, untouched, has probably no more than a few kilometers on the clock and has that particular new car smell. And for many people, that is something you just can’t put a value on.