It’s time to leave that old jalopy to rot by the curb, you need a new car. So where to begin?
Well, first thing’s first, do you want to buy new or do you want to buy used? If money doesn’t grow on a tree in your backyard, then that’s an important question. Getting a new car is awfully pricey, but getting a used car can be a money pit.
Having to buy a new or used car is an exciting, but also terrifying thing to do. The next few years of your transportation life are at stake and it all comes down to this choice.
The good news is that the internet exists, and there’s plenty of research to be done.
Let’s walk through the pros and cons of buying a new car, the pros and cons of buying a used car, and other things to look out for when making this important decision.
Pros and Cons of Buying a New Car
When the time comes to get a new vehicle, the first thing that you’ll probably do is take a look at your bank account and income to determine the budget that you’ll be dealing with.
Here are the pros and cons of buying new:
Pro: It’s New
The most obvious thing to throw in the “pro” column is that your new car will be…new.
No one else has driven it before, so all of the fear-of-the-unknown stuff isn’t an issue. In addition to that, it’ll come with the latest state of the art technology that makes driving fun. Apple CarPlay, Android Auto, Bluetooth, GPS, and all the newest gadgets will be at your fingertips. And it will have plenty of miles ahead of it covered by a new car warranty.
What you might not be aware of when you’re buying a new car is that its value goes down significantly as soon as you drive it off the lot. It’s common for a car’s value to depreciate by 20% after the first year of mileage, wear and tear. Once driven, your new car becomes a used car to the rest of the buying market.
Pro: Safety & Gas Mileage
A benefit of having the latest technology in a vehicle is having all of the advanced safety features that are available in new cars.
Autonomous emergency braking, blind spot monitoring, adaptive cruise control, and lane departure warning are standard features in many vehicles today, even the cheaper models.
While having these things won’t make you or anyone else a better driver, it’s comforting knowing that your car is looking out for you. Most of the above safety features have become common in the past five or so years, making it less likely to find them in a used car.
Also, if there are any defects with the safety features of a new vehicle, they are usually covered under a lengthy warranty. If you run into problems with a new vehicle’s safety features or the vehicle has a substantial unfixable defect, Lemon Proof purchased with the new car, saves new car owners thousands of dollars in getting out from under the Lemon.
Automotive manufacturers are often trying to increase the fuel economy in new models, so buying new may save on fuel costs. So, though your car lost some of its value as soon as you drove out of the dealership, you’re slowly making that money back with longer trips between fill-ups.
The simple fact of the matter is, cars that are worth more have higher insurance costs. Consider this if you’re on the fence because you could be looking at a drastic difference in monthly insurance payments between a used car and a new one.
This is exacerbated by whether or not you’re paying in full or paying off the vehicle over time. Many dealerships or financial institutions will require full coverage until the vehicle is fully paid off.
Pros and Cons of Buying a Used Car
When buying a used car, a lot more prep work has to be done in figuring out what kind of car you want, actually finding the right make and model, and then making sure that the car isn’t going to break down on you within the month.
However, people are moving on from their vehicles at breakneck speeds these days, so you can find newer vehicles for better prices.
Pro: So Much Cheaper
Nowadays, on used car websites, you can easily find quality used vehicles for pretty much any budget. Rather than pay $30,000 for a brand new car, you are able to get the 2007 version of the same model for about a tenth of the cost.
It’s that depreciation thing that’s hurting new car buyers giving a hand to used car buyers.
Speaking of depreciation, when you purchase a used car, the value doesn’t dip nearly as much as it does with a new car so your net loss when buying another car in the future isn’t so bad.
Con: The Unknown
Yes, the worst part of buying a used car is that you haven’t the slightest clue what kind of trouble the thing has been in.
As long as you have some knowledge, or buy from a trusted source, then you will be fine. But there could be something a dealership isn’t telling you or some undetectable problem that can arise down the road.
Pro: You Can Get a Nicer Car
Another benefit to choosing a used car is the ability to shop a class above where you would have to look if you’re buying a new car.
Because of the huge depreciation that even luxury vehicles experience, models that are even a few years old become much more affordable to people who otherwise couldn’t afford them.
One more major con for used cars is the repairs that come inherently with a car’s aging process. As more miles are tacked on, the possible need for major repairs goes up a lot. You could find yourself spending a lot of money at your local garage.
So…Which Is Best?
As we’ve laid out here, there are pros and cons to buying a new car and a used car.
If your budget allows for the purchase of a new car, that might be the better bet, but remember that its market value decreases as soon as you own it. But the value in a new car is the higher probability of problem free operations for a number of years.
While you can find used automobiles for a fraction of the price of a new one, there is the real possibility that you’ll be spending all that savings on repairs down the road.
And if you decide on buying a brand new car, contact Lemon Proof before you do so you can have peace of mind protection against the possibility that your new car is a lemon.