When it comes to buying a car, along with considering the model of your vehicle, you also need to decide if you can buy a new or a used car. This is a vital decision that directly influences your budget and makes significant differences in hair finance for the next few years.
According to a report by the national automobile dealers association, an average person buys 13 cars in his lifetime, and each of these costs somewhere between 30 to 35 thousand dollars. If the cars one buys are three or fewer years old, the buyers can save up to 130,000 dollars in his lifetime.
It means that buying a used car instead of a new one, in a nutshell, is all about saving you money and easing your budget for the coming years. If you are, I am sure whether you need to see used car dealerships or go to a showroom to book a new car for yourself, read out our comparison given below to help yourself make an educated guess.
As stated in the introduction, the fundamental difference between buying a new and used car is the price. New cars always cost more than the used ones. There is no getting around for a discount for purchasing a brand new vehicle. But it really does not mean that you can get the old or used cars at cheaper rates, depending upon the brand, model, and the age even used vehicles can be very expensive.
Therefore you are advised to be very careful when it comes to pricing. If there is a hairline difference between the prices of both, we will recommend you to go for a brand new vehicle.
Depreciation means the value of vehicle losses over time. For instance, if a car costs $50000 after one year, there will be a 10% depreciation in its price, and it will cost 45000 dollars. If you buy a new car for 30000 dollars and say late three years later, the depreciation cost will be $15,000. Now let’s say that you buy the same three years’ used car for $15000, and you sell it after three years after buying the depreciation cost will be only $5000.
If compared, used cars are way better than branch new ones, but if you want to enjoy the best driving experience, it’s worth paying $10000 extra and go for it.
Interests And Incentives
Most of the people do not have enough budget to pay in advance for cash while buying the vehicle. Things get very complicated when it comes to vehicle loans. Because of the higher interest rates of new automobiles, you are likely to pay about half of the car’s price in the form of interest.
But if you want lower finance rates, manufacturers will offer you the right incentives sometimes with 0% interest for a specific period. You can also get cash rebates. It means that the higher the advance amount for the starting price you pay, there will be less wind-up, plus you can split the remaining amount into manageable payouts.