The age-old question,” Should I buy a new or used car?” Well, if you asked us this question 10 years ago, the obvious answer would be to buy a new car and avoid all of the complications that come along with buying a used vehicle. But in today’s market, we have found that there are pros and cons of buying either a new or used vehicle. From the industry secret of depreciation to the newfound reliability of most vehicles, we have dug deep to find the pros and cons of buying a new vehicle or a used vehicle. You can find what we have found down below, it even changed our minds!
New Vehicles And Depreciation
One of the biggest secrets in the new car industry is the fact that newer cars depreciate faster than any other investment you can make. New cars have been recorded to lose at least 20 percent of their value in the first year after purchase while used cars will only lose around 5 percent. To put this in perspective, a new car worth $30,000 will be valued at $15,000 after only 3 years while a used car purchased at $15,000 will be valued at $10,000 after the first 3 years of ownership. While you may feel the advantages of driving a new car outweigh the value of the car, is the enjoyability of the trip worth $15,000 after 3 years?
The Benefits Of Used Car Ownership
In the modern car market, the used car stigma of bad reliability and prolonged maintenance are no more! With manufacturers having more advanced technology, it is common for newer cars to drive up to 100,000 miles before any major repairs are needed. Along with the advanced reliability of modern used cars, you can enjoy cheaper fees like lower insurance rates and cheaper costs to register the vehicle. By saving all the money by looking at used vehicles, you can even look to buy more luxury brands than you would when buying a new car. The final benefit that we will be covering with used vehicles is that they are stress-free. Scratches, dings or dents are a lot less worrisome with a used car!
The Benefits of New Car Ownership
While the costs of used car ownership and purchasing is drastically lower than shopping for a new car, new car shopping is a much easier and friendly process for people looking to buy that don’t have much knowledge in vehicles. Unlike buying used vehicles from private owners, with new cars, you won’t need a lump sum of cash to purchase the vehicle which dozens of options and variations of financing available, making a vehicle more accessible. The biggest benefit of purchasing a new vehicle is having the most advanced technology in your vehicle. New cars will always be safer, more user-friendly, comfortable and fuel-efficient than their used counterparts.
When buying a new vehicle, most of the time the vehicle will come with a strong warranty to give you extra peace of mind like with Hyundai with a lifetime powertrain warranty. With a used vehicle, if any major repairs are required, this cost will have to come straight out of your pocket and if you don’t have the cash, your car may be sitting a while. The last benefit of purchasing a new vehicle is the prestige, you don’t exactly hear many people bragging about their used hoopty they just bought!
So when it comes to whether you should buy a used a new car, it comes down to personal preference. You may value something in a new car that a used car simply just doesn’t offer or you may not have the budget to buy a new car. At the end of the day, it’s all about buying what makes you happy.