Buying a car can be both exciting and stressful. More times than not, it’s a pricey investment. One of the first questions every person asks is this- should you buy used cars or new cars?
Let’s look at used cars and new cars individually, looking at the advantages and disadvantages of each one.
Used Cars
While the search for a used car is not as glamorous as picking a new one out of the lot, there are definitive advantages to going this route.
Advantages:
It’s Cheaper
The most obvious one is money. As of 2022, the average car payment for a new car is $667, while a used car has an average monthly cost of $515. Prior to the pandemic, the average cost of a used car was $17k, which is less than half the price of an average new car.
The insurance, interest rates, and taxes on a used car is always going to be cheaper. Overall, choosing a used car will be easier on your pocket in more ways than one.
Less Stress On Car’s Condition
Choosing a used car over a new one will ease the stress of keeping it looking perfect.
Any dent, scratch, or mark on a new car will tank its resale value. Used cars don’t have this problem nearly as much.
If you’re looking for a vehicle to drive to work everyday or to pick kids up in, buying a used car is the more practical option.
Disadvantages:
Less Reliable
One of the disadvantages to not choosing a brand new car is its reliability. When you buy a used car, you can never truly know its full condition from its previous owner. This can make choosing a used car risky.
This is where choosing where you buy your used car from is imperative. Used cars are sold at most dealerships. Going this route will give you a better guarantee of the car being in working, long-lasting condition.
Used Cars Are Sold As-Is
What this means is that used car sales are final. This makes having the car looked at by a professional mechanic before buying important.
Being sold as-is also means without any warranties or protection. This adds to the risk factor for buying a used car.
New Cars
While buying a used car can be more practical and less expensive, nothing beats that new car smell! While a new car is obviously more costly, there are some pretty big advantages to choosing this route instead.
Advantages:
Easier To Find A Car
Each new car is supposed to come in perfect condition. This includes zero manufacturing errors, zero miles, and with no dents or scratches. New automobiles come with protections through manufacturer warranties.
This also eliminates the “risk factor” that used cars have with a car’s condition. Because of this, all you have to do is search for the make and model of the car you want.
Newer Car, Newer Technology
Not only are you buying a car with newly made parts and functions, but new technology too.
If you’re looking for better safety features, fuel efficiency, and communication tactics, a new car is the way to go. If newer technology is important to you, a new present-year car may be worth thinking about.
Disadvantages:
Depreciation
One of the bigger downsides to new cars is the depreciation of it. The second the car is bought and driven off the lot, it will begin to lose value.
During the first few years of owning the car, the value will decrease at a rapid rate. Because of this, the turn/trade-in value will be much less than its original listing price.
More Pricey, More Debt
New cars are going to be more expensive, period. This is not an unknown quality of new cars, and financially is a big purchase.
Most car buyers leave the lot with debt unless they choose to pay for it in full.
Debt also means interest rates. If you have a lot of other debt already and don’t want to add another bill to your life, weigh out this con very well. If finances are a concern for you during the time of wanting a car, a used one may be the more feasible option.
Which will you decide- used cars or new cars?
