There are a lot of questions that are involved when deciding on buying a car, the first and the most important one is, should you buy a new car or an old car? There is always confusion and a sense of fear as you are going to do this once every 3 to 5 years.
True, that buying a new car ensures low risk, less hassles and full factory warranty for a few years that will give you peace of mind. But, buying an old car does mean a lot of savings. Because no one tells you about the sinister-sounding financial word: depreciation! A new car loses close to 20% of its value from the moment it is driven out of the showroom. Even if it does not lose that much, driving it for a year will ensure that it loses 20% of its value. Not all cars depreciate at the same rate, some rare brands do hold their value exceptionally well. But, if suddenly no one wants the car from the brand that you bought from, you are staring at a way higher depreciation after that.
Not that we can conclude, that used cars are better. While buying a used car, careful consideration of the necessary check points would ensure that you get a car that is as good as a new one. People used to disapprove of used cars by saying it was a sure shot way to buy someone else’s problem. Not anymore. Over the years, cars have never been more dependable. Cars today can deliver more than 100,000 miles before they need major repairs. Regular maintenance on the car like oil change, brake jobs and tires have been reduced as a result of the quality improvement.
Advantages of buying a New Car include –
Made to Order – Gives you the option to spec your new car just the way you want it, like getting the right combination of interior and exteriors color options.
It’s not Used – New car does zero out the hassle by making sure that the car has never met an accident, has not been mistreated by its previous owner, clean history, no wear or tear and more importantly less smelly.
Warranty – Like the other points mentioned above, the option of having a warranty gives you that peace of mind without paying anything extra.
Latest Gizmos & Tech – Cars today come with the geekier tech packed inside. Navigation, USB, Bluetooth, Touch Controls, steering mounted Controls, Launch Control (that you never use), different drive M\modes,
Financing – More financing options and, the banks offer lower financing options on new cars because they are worth more and have yet not depreciated.
Maintenance – Car manufacturers these days offer free scheduled service maintenance for a certain period or mileage, basically saving the cost on its maintenance in the initial years of ownership.
Advantage of buying a Used Car include –
Savings on price – Because buying a used car can save you close to 30% or more, it allows a buyer to step up to a higher-class model.
Depreciation – New cars depreciate the moment you drive out of the showroom. With a used car, there is not depreciation the moment you drive it off. Also, less mental pressure about the first dent or chipped paint as the previous owner would have taken care of those for you.
Cheaper Insurance Rates – The older the car gets, the lesser you pay on its insurance as a result of the depreciation on its price and age of the car.
Easy Registration – Buying a used car saves you a lot time and cost. A used car would require way less registration processes as most of the processes have been done by the previous owner. Also, the cost of registering a used car goes down every year because of its age and depreciation.
Certified Pre-Owned Cars – Buying a used car from a certified pre-owned car dealer ensures that the car has been thoroughly checked and ensuring factory warranty attached with it.
Buying a used car is always a better value proposition. Because, cars are so robustly built these days that a car used for 2-3 years still looks, drives and feels like a new car. Also, if you are learning to drive, then a used car makes a lot more sense as it would save you immensely on the ding that you would occasionally have on your car before ruining your brand-new car with your not so fancy driving skills.
If you get it thoroughly checked by a mechanic, you have nothing to worry when buying a used car. As a car buying consultant, you can reach out to me anytime via email with any questions when buying a New or Used Car.
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