“Should I buy a new car or is a used one is the right way to go?” The truth is that both a used car and a new car have their own set of advantages and disadvantages. Getting a new car can be rewarding, extremely exciting, and impractically perfect. On the other hand, a used car does not go through the depreciation a new car goes through.
Alongside that, a used car is a more economical and practical choice of the two. A new car is something that has sentimental value. It is the more emotional choice of the two and that might be enough to convince several individuals to buy a new car instead of a used one.
Should I Buy A New Car?
The question every individual that is in the market to buy a car is asking is “should I buy a new car?” The answer to this question has varying perspectives. One of them is to go for a new car and bite the expensive bullet and take a loan to pay for your car. The second is to go ahead with a used car. A used car might not have the excitement, the reliability, or even the smell of a new car which can be a deal-breaker for several individuals.
If you want a car without any problems, with newer parts, and are not bothered by the depreciation any new car goes through a new car is the way to go. A new car is like a blank slate, a new beginning. The miles on the car are next to zero. The engine runs perfectly and most efficiently.
And the biggest advantage is that with a new car you have any peace of mind. You don’t have to worry about the fact if the used car deal you took was a good deal or not. With a newer car, there are some financial advantages too. Mostly like getting good and finance options. This may help some people to invest in their dream car.
Reasons To Buy A New Car?
Getting a new car for your garage can be extremely tempting. A new car certainly comes with several advantages. Specially advantages like new, shiny, and up-to-date features alongside minimal to none miles on the odometer. A car has become a major necessity in today’s day and age and a new car is something that can get every car owner excited.
Everyone needs a car to communicate more conveniently and doing that in a new car is something that several people would want. That is why here are 5 merits that answer the question,” should I buy a new car”.
1. Why Should I Buy A New Car – Everything’s New
Buying a new car means that all the parts of the car, the interiors, all the engine components, and the exterior are comprised of new parts. This means that there are no problems with the car any owner should be worried about.
Even if there is something wrong with the car, the vehicle is covered with a warranty. This allows any car owner to take a sigh of relief. And even if there is a problem with the car, the company is obliged to take care of it and make sure that the vehicle received by the consumer is perfect. This takes off a huge cloud of stress over any car owner’s head.
2. Why Should I Buy A New Car – Advanced Technology
Buying a new vehicle can have several advantages. One of these main advantages of a new car is the updated technology. Any and every new car comes equipped with the latest and the best technology that fits a consumer’s budget.
So buying a new car means, having the benefit of enjoying all the new tricks and features that come with them. Alongside that, the excitement of just having fun with all these new features is something that justifies the cost of buying a new car.
For example – Apple CarPlay and Android Auto were a feature only reserved for cars with a huge price tag. But this has changed recently and manufacturers include these features as a standard feature on all of their cars.
3. Why Should I Buy A New Car – Peace Of Mind
Most of the population looking to buy a car is for making their lives more convenient. That is why some individuals prefer buying a new car with new parts so that they do not have to worry about their mode of transportation break down. The worst part of planning a trip away for the weekend, you do not want to spend most of your time fixing the car.
Alongside that even if your car does have any problem, there are the manufacturers’ warranty to fall back on. If you fill it up with gas and perform routine maintenance your car can have a nice and clean life, without a problem. You cannot say that about a used car because there are limited ways of knowing the history of the car.
4. Why Should I Buy A New Car – Fuel Economy
There are several advantages of buying a new car. With the introduction of innovations and technologies, there have been huge new strides in the area of fuel economy. Manufacturers are building new, lighter vehicles with more efficient engines. In addition to the added technologies like the automatic start/stop and other eco modes to aid efficient driving.
Alongside that, the latest petrol engines have drastically improved fuel economy. When compared to a petrol engine from five years ago, they have come a long way in being fuel-efficient. There are usually a number of super-frugal diesel options also. There are several options like a hybrid or an electric drive, but they are extremely expensive
5. Why Should I Buy A New Car – More Financing Options
Car sellers and automakers want to sell newer cars rather than buying old used cars. That is why they offer several incentives to lure buyers. The most used incentive is a cash rebate. Alongside that, different insurance agencies offer better interest rates to encourage people to buy new cars.
This means you do not have to pay the exact sticker price which can be a nightmare for some. So you can negotiate a final price and apply incentives, which will save you a huge amount of money.
Merits of Buying A Used Car Over A New Car
As said before, buying a new car can be extremely tempting. They do come with a number of advantages from minimal to no mileage, warranties, and new shiny features. But buying a new car may be one of the worst financial investments of someone’s life. This is true for the majority of car buyers. Especially for buyers who borrow money to pay for a new car, in the form of a loan.
To pay for a new car, several buyers make monthly payments for several years to pay the full price of their cars. When it comes to what’s best for one’s finances, one should never borrow money from a product or a commodity that goes down in value. Here are some of the reasons why you would think negatively about the statement, “should I buy a new car.
1. Cost Or Price Of A Used Car
Buying a used car instead of a new car is going to cost an individual relatively less. It is important to remember that a new car depreciates as soon as it drives off the parking lot. That is why getting a new car can be not very financially viable.
An individual can get a relatively new car, which may still have “the new car smell” and at a discount of thousands of dollars. The money required to buy a new car may not make sense for everyone. A solid and relatively new used car can provide reliability at a cheaper cost and relatively newer features.
2. Less Depreciation
The most amount of damage is done to the value of a new vehicle as soon as it is rolled out of the lot. This happens due to depreciation. The majority of a car’s depreciation occurs in the first year of its ownership. On the other hand, a used car has already gone through most of the depreciation.
There is not much room left to depreciate, and an individual gets closer to what he/she had paid eventually when you re-sell it. So anyone buying a used car means that your vehicle mostly holds its value.
Here is an example, A 2018 BMW 330i used to cost around $41,000. On the other hand, if an individual decides to buy a year old (2017) BMW 330i instead of a 2018 model, it would be cheaper relatively a lot cheaper than a new vehicle. A second-hand, one-year-old 330i will usually cost you around $10,000 cheaper than a new one.
3. Lower Insurence Rates
Buying a used car can be more economical than you think. An individual does not only saves money on the car itself but also insurance prices. Insurance rates are extremely lower on used vehicles and continue to decline as the vehicle ages.
Before deciding on a vehicle, an individual should get quotes on the vehicle they desire. Irrespective of your choice is a new or used vehicle option, consider these rates during your decision-making process.
Alongside that, a used car is the answer for someone who doesn’t qualify for finance. This could be due to affordability issues or an extremely low credit score. A used car is the correct answer is the ideal choice if any person is looking to buy a car in cash.
4. Less Pressure On Being Perfect
Buying a used car means that the expectations and care that go into taking care of a new car are overlooked. Getting a dent on a brand new car can be particularly devastating. This is because every individual has the desire to keep their vehicle in peak condition. Purchasing a used car has less mental emphasis placed on being used. Keeping your car vehicle absolutely clean and dent-free is the most important part of owning a vehicle.
At the end of the day, whether it’s new or used, but maintaining perfection is not going to be your top priority with a used vehicle. This ultimately reduces the amount of money spent on a new vehicle. Alongside spending a considerable amount of less money, the stress of getting a scratch or dent on a new vehicle.
5. Upgrade Your Current Car
Buying a used car is relatively cheaper than buying a new one. This mainly happens because of the depreciation that an automobile goes through. A car loses most of its value as soon as it rolls out of the lot. An individual can save about 30% if not more while buying a used car.
Because of the lower price of these cars, several individuals upgrade their vehicles. They usually go for a higher class of car, which offers more luxury. That is why several individuals prefer buying a used car from a luxurious brand, than a new car that belongs to an economical brand.
5 Tips For Buying A New Car
Buying a car can be extremely exciting. It might be a new car or a used one, but the experience of buying a car can be extremely exciting. With the introduction of new technologies being introduced every day. New cars have better features and new technologies from models from a decade ago. This might persuade several new individuals to buy a car.
There are several things an individual needs to pay attention to while choosing a car for themselves. That is why we have developed certain tips for everyone with the question, “should I buy a new car” in mind. Be it a new car or a used car there are several things an individual needs to be prepared with and several things he/she needs to get done before buying any car. Here are five tips everyone needs to pay attention to.
Tip No.1 – Get Pre-approved For A Loan
One thing every individual looking to buy a car needs to know is that a salesman will do everything in his power to sell you a more expensive car. That is why knowing your budget is absolutely important before the salesman makes you fall in love with an out-of-budget expensive sports car that you can not afford.
That is why doing your due diligence and before you go shopping for your new ride, get your credit score. This will not only help you to know what exactly is your budget but will help you gather a lot of information about your credit report.
Another problem that you might face is that the dealership might be charging you a higher rate of interest. People are being charged more for interest rates than they should be based on their creditworthiness. People do not realize it, but dealerships are allowed to jack up the rate of interest than what you qualify for.
For example, you might qualify for an interest rate of 6% but the dealership is allowed to not tell you that and charge you 9% instead. If you take this bad deal you might end up paying thousands of dollars more which will definitely make you feel cheated.
Another added benefit of having your rate preapproved is the availability of negotiation on the interest rate. If anyone qualifies for a 4% interest rate, they can bargain and get it down to 3%. This will help save a lot of money.
Tip No.2 – Keep It Simple At The Dealership
Whenever you buy a car, focus on one thing at a time. Always remember not to give a lot of information to the salesman. Holding all of your cards close to you will help you with the leverage you need to make a good profitable deal.
Primarily, the most important thing an individual needs to do is to not tell the salesman if they want to finance their buys or they want to trade in their old car. This might make the game too complicated. If you negotiate a good deal on a car, the salesmen might jack up the interest rate on or they might give you a low ball offer on the car you want to exchange.
This is why any individual out there needs to do their due diligence and proper research before going to buy a new vehicle. Alongside that keeping, a couple of cards inside your sleeve will help you get the best deal available for you.
Tip No.3 – Do Not Buy Any Add Ons At The Dealership
Once an individual is done bargaining and has agreed on a price, that is the time every dealership tries to sell them extra add-ons. Usually, with new cars, every dealership tries to sell an extended warranty, protection plans, ETC. Every dealership out there makes a significant amount of profit on these deals.
These parts are overpriced which plays as an advantage for a number of dealerships. This happens usually with a new car. Especially with the introduction of long-term loans, there’s more wiggle room for the sellers to try and see their customers these overpriced products.
Tip No.4 – Steer Clear From Long Term Car Loans
More than 33% of the car loans these days are of more than 6 years. This can be really dangerous and something that will not work for you in the long run. A seven-year loan means that the monthly amount to be paid will be relatively less, but you will be paying a huge amount of money as interest. You will be charged 2 years’ worth of extra interest if you compare a 5-year loan to a 7-year loan.
It is always better to go for a 5-year loan instead of a 7-year loan. When it comes to any used car, on the other hand, a three-year loan, that is a 36-month loan is more than enough. This is because if the used car breaks down and isn’t worth fixing, it is more likely to have a paid-off loan by then.
Tip No.5 – Consider Buying A Used Car
An unsaid rule while buying a car is that the price of a car should be anywhere between 20%-30% of your yearly income. Several people do not pay attention to this rule and buy a car that they can not afford. They end up paying off the price of the car, alongside the maintenance for quite a long time. They have a lot of problems and end up extremely stressed about the purchase they made.
We live in a golden era of used cars. The reliability of cars has increased by a huge margin. Alongside that the choice of used cars available is huge. Any year, model or make is available in today’s day and age in the used car market. Alongside that, a 3-year loan alongside a used car is the perfect recipe for anyone who wants a good deal on a good car without losing a lot of money to interest or depreciation.
Facts: Pros & Cons of Buying a New Car
- Buying a new car provides peace of mind and a sense of security, as it offers the latest safety and fuel efficiency technologies, such as navigation systems, collision detection sensors, and electric engines.
- Purchasing used or certified pre-owned cars is a reliable and less expensive option for those who do not want to pay the cost of new car technologies.
- Buying a new car is easier than buying a used car because you only need to determine the make and model you want and start shopping, and the loan and registration process is simple.
- Year-end sales events, three-day holiday weekends, and the end of each month are traditionally the best times to get great deals on a new car.
- Dealers may offer low or zero percent interest rate/APR and other incentives on new car loan financing, and credit unions offer affordable car loans.
- New cars have higher safety standards, including blind spot alerts, automatic emergency braking systems, 360-degree safety view cameras, and stolen vehicle tracking software.
- New cars have the latest technology, including higher fuel efficiency, lower emissions, wireless smartphone charging and connectivity, and more.
- The main disadvantages of buying a new car are depreciation, initial cost, and expensive auto insurance for comprehensive and collision coverage.
- Purchasing a new car is worth it if you plan to keep the car for many years or take advantage of zero percent interest incentives and invest the monthly savings into an investment or a mortgage.
- Other car buying options include used cars, which can be purchased from a dealership or an individual, certified pre-owned cars, which are previously owned and subjected to a rigorous, multi-point inspection, and leased vehicles, which are new cars that can be purchased or leased.
Conclusion – Should I Buy A New Car?
Should I buy a new car? Or, is a used car just as good? This is a question that is on every individual’s mind who is looking to invest their hard-earned money into a car. A new car has its merits and demerits, and so does a used car. A new car can be extremely reliable, they give an individual the peace of mind of being absolutely perfect.
Alongside that, they give better fuel economy with the added benefit of its engine working without a hiccup. They come with several financing options and have up-to-date technology that makes a new car the perfect package for anyone and everyone out there.
On the other hand, a used car is cheaper and there is absolutely no pressure on the vehicle being perfect. The benefit of low-interest rates clubbed with the fact that most of its depreciation has already taken place is something that is much more practical than a new car. This can be something that tips the scale for someone who doesn’t want to put a lot of money into a vehicle.
So making the ultimate decision between a new or a used car can be extremely difficult. Hence it is of utmost importance to weigh all the pros and cons before investing your hard-earned money.