Pros and Cons of Buying a New and Used Car

The main question that a car buyer faces is whether to buy a new car or look at the options for used cars. Used cars tend to have an attractively low price tag. But when choosing such options, one should take into account the peculiarities of their operation. In this article, we will tell you about the pros and cons of buying a new and used car.

Benefits of buying a new car

Buying a new car has many advantages. Let’s consider some of them:

There is no story 

The first owner doesn’t need to worry about what happened to the car in the past. The car was not in an accident and doesn’t have high mileage on the odometer.

Easy and fast 

It is much easier to buy a car that doesn’t require the costs of a mechanic’s examination, obtaining a loan certificate. Dealerships offer a choice of equipment, color, etc.

A discount 

All manufacturers are trying to stimulate sales of many car models. Such purchases can reduce the cost by several hundred dollars.

Cheap lending

When you buy a new car, you get lower interest rates than when you buy a used car.

Modern technologies

When you buy a new car, you get the latest technology in the automotive market. The owner of a new vehicle receives a modern level of security, information, and communication system.

Profitability

Every year, manufacturers strive to improve the performance of their products. In modern models, four and six-cylinder engines with a pipe supercharger are used. The powertrains are tuned to burn less fuel without compromising highway driving dynamics.

Warranty service

All new vehicles are covered by warranty coverage, indicating the period in years, or miles traveled. The transmission warranty often exceeds the manufacturer’s basic obligations.

The feeling of a new car

For many people, the smell of a new interior, plastic, and leather is the main reason for purchasing a new vehicle. Friends who get into the car understand that its owner didn’t take the path of making the purchase cheaper.

Disadvantages of buying a new car

There are a number of reasons why purchasing a new vehicle is not the best choice. Consider a list of such disadvantages:

High price

This option is the most expensive way to get behind the wheel of a car. Statistics say that new cars exceed used models by 30-40% in price.

Purchase only through a dealer network

New vehicles are only sold through a dealer network. If there is no dealer for a certain brand in your region, then you will not be able to agree on a reasonable price for a certain model.

Sales tax

When you buy a new car, you pay tax on the entire price. When buying a used car, you will have to pay tax on the residual value of the car.

Expensive insurance

New cars tend to be more expensive in insurance.

The smell of the car

The new car scent contains volatile organic compounds that are released from plastic and vinyl. Some people don’t like them.

Benefits of buying a used car

Some buyers are unable to approach the new vehicle due to its high price tag. For them, buying a used car has many advantages:

Cheaper in many ways

Buying a used car will save you money not only by reducing prices but also due to low insurance and taxes. Such a car is easier to fit into the monthly family budget. The buyer can avoid a large loan that will last for six or more years.

There is no sharp drop in value

After the purchase and start of the operation, new cars fall in price. A significant proportion of the value is lost in the first three years. When buying a used car, you will experience a slow drop in the price of your vehicle as it ages.

You can buy a good car

Due to the fact that a used car has a lower price than a new car, you can afford a good car for the same price. For example, you can buy a used Mercedes-Benz instead of the new Honda Civic.

Know the weak points of your car

When the car has passed many years of operation, it will have a list of reliable and unreliable components. Studying the ratings and reviews of cars, you can choose models that are unpretentious in maintenance and do not have expensive elements. Replacing some parts of the car is very expensive.

Disadvantages of buying used cars

While buying used cars has several significant advantages, new owners of used cars may face the disadvantages of such vehicles:

Buying someone else’s problems

A survey of people buying new cars suggests that the owners of new cars don‘t want to buy “other people’s” problems. Potentially, you can face the breakdown of a used car several months after purchasing it. 

Hidden reports

You will never know the entire history of a used vehicle. What has happened in recent years can be found in the reports. But the history of the accident that occurred many years before the sale of the car can be hidden from the new owner.

Selling “as it is”

You buy all the problems of a used car and become the heir of faulty components and parts that need to be repaired and replaced. Indeed, you can sell this junk car for cash, but it is better not to buy it at all. 

No manufacturer warranty

Usually, you buy a car without a manufacturer’s warranty. The new owner will have to pay for repairs and parts out of their own pocket.

High lending rates

If you buy a used car on credit, then you should expect unfavorable conditions from the lender. In this way, they compensate for the increased risk in the trade.

Other options

Buying a new or used car isn’t your only option. There are a couple of options that will help you save some of your personal funds:

Certified used cars

Low-mileage vehicles, the age of which does not exceed 3-4 years. They are inspected by a dealer, taking into account the requirements of the manufacturer. Many of the vehicles that fit this category are rental vehicles or vehicles that have been driven by employees of the dealer network.

Leasing

Leasing is another way to get a new car, with small monthly payments. You don’t actually own the vehicle and you return it at the end of the contract.

Leasing of used vehicles

In this case, you can get a good car to drive at a low price.

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