Should You Buy a New Car or a Used Car?
When buying a car, it’s important to do your research as a consumer. A vehicle is a major purchase and can cost you thousands if you don’t make an informed choice. On one hand, you can purchase a vehicle that is in pristine condition and can handle a hefty amount of driving without parts degrading. On the other hand, buying something because it’s cheap can lead to a lot of disappointment and wasted money if it starts to break down. One thing to remember, buying a brand-new car when you do not have the income to do so can financially cripple you.
Both buying a new car and buying a used car have their pros and cons. You need to do some research before you make your next purchase to help keep you from choosing the wrong method.
The Pros and Cons of Buying New
Buying a new car comes with a few great positives, but it’s not without negatives. To start out on a positive note, buying a new car often grants you access to the newest safety technology available in whatever price range you’re buying in. A car made recently will have up-to-date airbag systems, collision detecting, automatic braking and other perks that give you peace of mind. New cars also come with a warranty that covers repairs and ensures you’ll receive repairs to your vehicle if there is a recall or other major issue. On top of that, they often come with some form of roadside assistance for a predetermined amount of time. You won’t have to worry about breaking down without help being a phone call away.
The main con to buying a brand new car from a dealership is that it’s expensive. Even if you can afford the initial price of the car, it will depreciate in value a lot quicker than an older car that you bought used. It also comes with the problem of having to pay higher premiums for your insurance. It’s not an unobtainable purchase, though, even if your wallet is running a little on the light side. For some help with the financial side of buying a new car, try checking out westernshamrock.com.
Buying Used: The Pros and Cons
Buying a used car can completely eradicate the financial issues involved in buying a new car. Used cars can cost as little as a few hundred at their lowest and very rarely cost more than half of what a brand new version costs. Furthermore, as long as it doesn’t have a ton of miles on it, and no known issues, a used car is the exact same as a new one for all practical purposes. You also get to take advantage of some great warranty offers if you purchase from a used car dealership.
The only real negative to buying a used car is that it can be a dice roll. That’s not exactly a great thing when your hard earned money is on the line. There’s no telling why the previous owner traded it in or is selling it and how they treated it before deciding to part with it. In the worst scenario, you can end up buying a lemon. There are some ways to prevent that from happening, though and you can find more information on used car purchases here.
Is a Loan A Good Choice for You?
Deciding how to pay for a car is also a major decision in the car buying process. With private owners who are selling their vehicle by themselves, you will probably have to pay cash. However, it’s a lot cheaper to do so than going to a dealership.
If you do go to a dealership, you will most likely be given the option to finance your vehicle or you can take out a loan with another company. There are pros and cons for both paying in cash and getting a loan. If you pay in cash, there is zero interest to pay. You simply pay the entire price up front and then it’s done. The problem with that is that most people don’t have that type of money to spend at one time. Even a used car from a dealership can cost thousands.
By getting a loan, you can pay for the car in much smaller payments with interest being tacked on to each payment. In the long run, it costs more to pay via a loan. But if you need a vehicle quickly, and don’t have thousands of dollars available, a loan can really help you out. You do have to have a relatively large sum of money available to put down on a vehicle loan, though. In general, you should prepare to pay 10% or more for a loan on a used car and a bit more for a loan on a new car. For more car-buying information, read this article by The New York Times.