Cost Advantages of Buying a Used Car vs New Car
It is a nice feeling to drive away from the car showroom in your brand new car and that is a major attraction for many people who are in the market to buy a new vehicle, but would it be better or more cost-effective to look at other options such as settling for a used car instead?
Here is a look at some of the key pros and cons relating to buying a new car compared to buying a used model, including an overview of why buying new works if you want more choices, and an insight into what advantages there are for buying a used model when it comes to insurance.
Everything you want
In addition to the various options related to new car financing that should help you find a suitable finance deal, there are several other definite positive attached to the idea of buying a new car.
When you order a new car you are in control of various highly relevant options such as the color and spec of the vehicle that you would like to own.
If you want a specific color and trim these are options that you can sort when you place your order. In addition, any additional features or accessories that you would like included can be added to your list.
When you order a new you have the best chance of getting exactly the car you want without having to make any compromises.
Benefit from upgrades
Car manufacturers are constantly making improvements to their models and technological advancements mean that new safety and comfort features are being added each time a newer version of a make and model is introduced.
When you buy new, you can take advantage of these improvements and enjoy driving a car that features the latest safety features and gadgets.
You're covered if anything goes wrong
Buying a new car means that you have the peace of mind that comes with the main dealer warranty.
A new car should be reliable but if something does go wrong or break unexpectedly, you at least have the comfort of knowing that most of the cost of repairs and replacements needed will be covered by the dealership.
You automatically get a manufacturers warranty when you buy new and you can often extend that to enjoy up to seven years of almost trouble-free motoring when you buy from new.
Those are three arguments in favor of buying a new car so to try and balance the debate what are the prime benefits of deciding to buy a used car instead?
Save money when you buy used
Cost is a key consideration and most of us have a budget that we need to stick to when buying a car.
It is quite clear that because you are buying a vehicle that has already had at least one previous owner it is highly likely that you will spend less on a used car than you would when buying something straight out of the showroom.
When you buy a new car you are paying a premium price and that means you will suffer a certain amount of depreciation in the value of your vehicle almost as soon as you take ownership.
A good way of avoiding his scenario is to buy a car that has already experienced a drop in value due to depreciation, allowing you to save money by buying used.
You can still get peace of mind if there is a fault
Every new car comes with a warranty and if you buy a used car that is still within its warranty period you will get the same comfort that the previous owner had and enjoy the protection of getting a qualifying fault repaired at the manufacturer’s expense.
If you buy a used car through a manufacturer’s certified pre-owned program you will also benefit from the fact that the scheme ensures every vehicle sold through the scheme will have been subjected to an inspection process.
With this in mind, you might consider it a good tactic to buy a used car that is still within its warranty period but has already taken a hit on some of the depreciation since it was first registered as a new car. You can always paint your car a new color.
Save on insurance costs
When you buy a used car you are in control of your budget and can save up the cash you need to buy it outright.
If you can buy the car without the need for finance it will boost your finances and another positive factor associated with buying new is that you will most likely pay less for your insurance coverage as well.
It stands to reason that if you are insuring a new car that you have paid top money for the premium will reflect that you have to protect that high value if there is a subsequent claim that you have to make.
In contrast, you should find that your insurance rates on a used car in comparison to what it will cost to get coverage on a new one.
Paying high insurance rates will add to the total cost of buying and ongoing ownership so it is a fair argument in favor of buying a used car when you consider the potential savings you can make on your insurance costs.
When you are trying to decide whether to buy a new or used car the cost of insurance is one of the factors that you need to look at as part of your decision-making process.
As you can see there are clear pros and cons attached to either option and before you decide whether you prefer to buy a new car or search around for a used car instead, it pays to look at all the arguments and work out the financial considerations that could swing the decision one way or the other.
Now that you have read all the main arguments have you decided which option you will go for?