Buying a New Car vs Used
How Much Money Do you Save on New vs Used car in the first year?
The process of buying a car is strenuous and involves multiple processes, but the most important one is to take the decision of whether one should buy a new car or an used one. Well, to take this decision one needs to know what are the advantages and disadvantages of buying either a new car or a used one. How much a new car or an used one would help in saving money in the first year? At times it is even seen that although the column of advantages seems to be longer for the new cars, the pros in the used columns are not short and at times proves to be more useful than the new cars as well. Let’s deal with them one by one.
Finding some of the features that the new car provides as opposed to the used ones might help in determining which of them helps in saving more in the very first year itself.
- First and foremost, it is quite obvious that the new cars have never been into any kind of accidents, neither has it been mistreated by any kind of evil doers. Since the history of the vehicle is clean and has seen no wear and tear, the need for immediate maintenance can be discarded.
- For new cars, the warranty is untouched, unlikely the older ones. While this is a necessary investment that comes hand in hand with the used cars, the new cars come with the best warranty without even paying anything extra.
- With every passing day, car manufacturers come up with latest tech gadgets that just not enhances the performance, but also helps in the evolution. While some of the car enthusiasts are tech savvy, and want the latest gizmos in their second hand purchased models, it needs to be done separately, which is no doubt a separate expense.
- The more the accidents taking place, the more the safety rules get stringent. As a result of it, the pre-requisites keep changing, and the latest models are incorporated with these latest safety measures. While one purchases the older versions, these safety measures need to be separately installed to avoid fines on road, and most importantly to be safe within. So as long as new cars are bought, these features come by default.
- Well, it goes without saying, that every new model that takes over the outgoing versions, have got one thing better for sure, and that’s none other than the fuel efficiency. Buying such models of the cars can actually save a lot in the long run as far as the soaring rates of the fuels are concerned. The used cars with older versions of engines can pound up on the recurring expenses and can fall heavy at times on the pocket.
- As far as financing is concerned, the banks tend to offer lower financing rates for the newer cars since they haven’t been hit by the depreciation yet. But one must keep in mind that the cheaper cars might not be a better deal in the long run.
While these points prove firmly that the newer cars tend to save a lot more money than the used ones, there are certain grounds that can be analyzed prior to investing in used ones.
- Depreciation is the first point where most people would bend towards having the used ones over the newer ones. Since most new cars tend to find 40% of depreciation in the very first year, the older ones find no depreciation hit at all. There’s no worrying about the parking lot ding or the rock chip in the paint, for there’s a chance that the previous owners of the car might have already taken care of these for you.
- Again, while the financing rates are concerned, the used vehicles turn out to be way less expensive. A little bit of research will help the individual in having cheaper loans from the market.
While assessing all the factors discussed, it might be tough for one to choose among the new or the used car. In these cases, the priority of the individual must be taken into consideration. It depends solely whether one wants to make the one time investment big enough, or want to have it done on a regular basis.