When buying a car, you will be faced with the dilemma of purchasing either a new one or used car. Either option has advantages and disadvantages. In this article, we expound on the pros and cons of buying a new over a used car.
Why Buy a New Car?
Buying a new car is the best decision you can ever make for several reasons. First, there is nothing to worry about the car’s history. You are the first user, so no fuss about whether the car was regularly serviced or not. Above all, you’re sure that it is accident-free. These days, it is hard to spot a salvage from an accident-free vehicle because of the excellent workmanship by auto body shops. New cars are also efficient and cheaper to maintain and actually come with full warranty coverage.
With a new car, you also get the latest technology. Safety technology is the priority here, and worth noting is the fact that it is evolving. A two or three-year-old car may miss out on the latest safety features. When it comes to aspects like infotainment and connectivity, you want the latest features. Today, it is not just about a built-in navigation system; Google Maps and Waze help you see traffic in real time. In terms of connectivity, only the latest cars feature Android Auto and Apple CarPlay.
It is also easier and faster to buy a new car. If you want the latest GMC Sierra Denali, you can quickly find from a dealer. However, if you are looking for a used one, it will take you a couple of weeks to find one in good condition. In terms of financing, lenders are quick to finance new cars compared to the used ones because the value of the collateral is known. The interest rates for financing is also cheaper compared to that of used cars.
The Cons of Buying a New Car
New cars have a lot of advantages, but then, there are several shortcomings, especially in terms of the costs. According to Kelly Blue Book, the average cost of a new car ($37,000) is almost half the average price of a used car ($20,000). The high costs are driven by the fact that the car is new, the sales tax for new cars are higher, and lastly, the insurance for a new car is more expensive.
Well, the decision of buying a used or new car solely depends on your budget. If you can’t afford that new 2019 Audi AL that goes for $120,000, you can settle for a used one at almost half the price. But make sure to look for a trusted second-hand car dealer.