If you are considering buying a new car and are in the dilemma whether to buy used car or opt for a new car, the choice can indeed be tough. To make the right decision, it is advisable to consider various important factors before making the purchase.
It is a popular fact that even the most popular coupes, top trucks, and best SUVs will lose around 20% of their value once you have driven them off the showroom. By the end of the first year of purchase of the new car, this depreciation has increased to 30%. Such scary figures often lead us to the assumption that buying a used car could in fact be a better option as the depreciation would be less, considering the fact that the used car has been purchased at a less price.
New car depreciation
The fact is that a new car which has been purchased at a cost of $30,000 after three years will sell for only about $15,000. Thus the amount that a person loses in depreciation will be $15,000 which is a substantial figure. This depreciation will also be applicable in case of top trucks and best SUVs if you end up buying these vehicles.
Used car depreciation
For example, if you end up buying a used car which is three years old for $15,000, the selling price of same after another three years will reduce by only $5,000 as it can easily be sold for $10,000. This way buying a used car will turn out to be a better deal and this applies to top trucks and best SUVs also.
Advantages of used cars
If we consider the advantages of buying a used car these could be numerous for the fact that used cars will always have lower car insurance rates and you will end up saving some of your worthy money which can be put to other uses. The cost involved in registering a used car will also decrease every year and you will save money here also.
You will always feel stressed when your new car gets a bump but in a used car, you will naturally pay less attention to such facts, and thus, buying a used car can turn to be a profitable endeavor.
All said and done, this, however, does not mean that you should not think about buying a new car as purchasing a new car also comes with its imminent benefits.
Advantages of new cars
Shopping for a new car is always easy as compared to used cars since a lot of options are available and new models keep coming every month. Moreover, a range of financing options is always available for new cars which you will rarely find in case you are opting for a used car. This way, you can always purchase a new car even if you are short of money in the initial stage.
New cars always come with the latest technology which will mean that you have a range of options available in every category and functionality of the car, something you will definitely miss in case you opt for a used car.
A new car always offers more peace of mind in comparison to a used car as the new cars are always covered under extended warranty for the first three years or first 36,000 miles, whichever is earlier. This takes always a lot of pressure from the mind of car owner and they can drive in comfort, something which they will be devoid of in case an old car is purchased.
You can always boast of having a new car among your friends and family when you opt for a model which has just been launched, a privilege which will not be with you when you purchase a car which has already been driven on the road and falls under the category of used cars.
Both new and used cars have their own set of pros and cons. So, make your choice by keeping in mind the factors mentioned above.