Should you buy a new car? Second only to a home mortgage, a new car is perhaps the biggest purchase you’ll make. But is it worth it when there are millions of quality used cars for sale out there? Let’s go over the benefits of buying a new car vs. a used vehicle.
1. Long Warranties
One of if not the major perks of buying a new car is its manufacturer’s warranty. The majority of new vehicles come with a comprehensive warranty that covers defects for up to 3 years or 50,000 miles. Some auto brands offer even more coverage; Hyundai, for instance, includes an incredible 5-year/60,000 mile warranty combined with a 10-year powertrain warranty. You may also be able to purchase extended warranty coverage through your car dealer.
Unless you’ve had your eye set on a certain car for years, you may be overwhelmed with the prospect of figuring out where to begin when purchasing a new car. There are so many brands, so many models, and so many variations of those models to choose from!
Deciding on a new or used car is another big hurdle to cross. Most people just think of new cars being nicer and more desirable, while used cars are cheaper and often more practical. But there’s a lot more that should go into consideration when deciding between the two options, so I’ve written this post to help you explore new and used cars on a deeper level.
After reading this post, hopefully you’ll know which option is right for you!
First, let’s talk about the pros of getting a new car:
-No one else has used it. Let’s start with the obvious! Most people clearly enjoy the new aspect of a new car. There’s just something comforting and more luxurious about being the first to use something — especially a car! You’ll know its entire history, you’ll be the first to use every feature, and you can treat it the way you think it should be treated, from the very beginning!
-Warranty: Along with the other perks of having a new car, one of the best is the fact that your car will be under warranty for a period of time. The length and conditions of warranties vary from car to car and dealership to dealership, but its always nice to know that if something goes wrong, you’ve got a backup plan.
-Customized, latest and greatest features: Because you’re the original owner of the car, you can choose the features you want in the vehicle from the very beginning. No updating a 10-year-old car with a brand new stereo, no getting a new paint job. You just pick the features you’d like and it’s all included in the cost of purchase.
-Longer life span. These days, cars are built to last at least 100,000 miles. (And some will last you much longer!) Still, the closer you get to that magic number, the more unreliable your car usually becomes. The life span is most important for those who plan to keep a car until it dies, but you’ll also want to consider the life span when thinking about the re-selling value. If the car has a short life span when you sell it, you won’t make much money off of it!
-Built safer. The auto industry is constantly improving safety standards, so the newer your car, the more likely it is to keep you safe in a crash. Safety should of course be a huge consideration when getting behind the wheel!
-Better gas mileage. Like the ever-improving safety standards, the auto industry is also constantly improving the fuel efficiency of most vehicles. Car buyers like this for the lower everyday cost, but it’s also an important way to keep our earth green.
-Fewer repairs needed. Because the mileage hasn’t been racked up on a new car, it’s likely to be running smoothly without any trouble for many years to come. And of course you’ve also got a warranty in case any major problems arise. So while you may be paying more upfront, it might cost you less later on.
-New car smell :-). Need I say more? Even if you get a “new car smell” scent, it just can’t be replicated!
Now, let’s talk about the pros of getting a used car:
-Lower price on a nicer model. If you’ve got a set budget and have a thing for BMWs or Mercedes, a used car will get you a lot more bang for your buck. For the same price you might pay for a very straight-forward, economy vehicle straight off the lot, you could be driving a nice used car with all the bells and whistles. (Even if the car is just a few years old with very few miles on it!)
-Avoid registration fees and sales tax. When you start shopping for a new car, you’ll see the sticker price, but then you’ll have to add a whole lot more to the cost on top of that. Registration fees, sales tax, extra features and other processes will bump up the price quite a bit. With a used car, someone else has already gone through all that hassle!
-Slower depreciation of value. Cars depreciate in value with every mile and year that passes by, but the depreciation slows down significantly after the first few years. Hence, the original owner will be taking most of the burden off whomever buys the car next, and you might be able to re-sell the car at a more reasonable price.
-Lower insurance payments. Insurance companies offer better rates for used cars. New cars are worth more and would cost much more to replace, so lucky you! Your monthly bill will be lower than the original owner ever had to pay.
-Ability to drive a unique or discontinued model. Say you’ve got a thing for vintage muscle cars or an awesome old Datsun truck. Well, buying a used car will be a no-brainer in that case, because you won’t be finding any of those on a new car lot! Used cars of an older era just have a certain charm you can’t get with a new model. Plus, it’s always fun to wonder about the history of where the car has been and what it has lived through with its previous owner!
-You might be able to avoid car payments. Some advocates of used cars like the fact that the price could be so low, all of the cost of the car could be paid upfront. You write the check, hand it to the seller and walk away without every having to think about car payments! Of course, you could do that with a new car too, but you’d have to have a whole lot more money in the bank! 🙂