To Buy a New Car or a Used Car?

Buying a car is a big decision. Might we say, one of the first “adult” decisions you will make. Because the decision depends not just upon what model and brand you want to go for, but also setting a budget and deciding whether you want to go for a lower brand or model, but a new car; or a used model of a better variety. This is a pretty serious decision to make, because it will impact your pocket as well as your second home on four wheels for the next few years. So, before reaching this important conclusion, be sure to go through our guide:

Why should you buy a new car?

New cars have newer technology. As much as this means more fun and convenience, it also adds up to more gas mileage and eventually, more savings on fuel.

Repair spend on new cars will be much lesser that on old cars, at least for the first few years.

If you buy the car directly from the dealer, you might get some attractive discounts or suitable financing options for example, auto loans at no interest rates or a few no-interest instalments.

Why should you not buy a new car?

Because automobiles are not assets whose value increase over time. Every single day you are losing money on it in the form of depreciation, and your resale value will never make this money back.

Moving on to the other side of the picture,

Why should you buy a used car?

The flip side of the reason we discussed before applies to used cars. Someone has already taken the hit of a depreciating machine for you. Because someone has already lost a sizeable chunk of money on the car you just bought, you are getting it at the depreciated cost, which is much, much lower than what it could have cost brand new. Agreed, the car will further depreciate in value. But will this depreciation on a small amount pinch your pocket as much as the one on a huge sum of money?

In fact, some of the financing perks applicable to new cars may still come in handy for you. You may be able to apply for loans at low interest rates in banks. Just do your diligent research. It goes a long way in being penny-wise. Sometimes, this loan amount turns out to be smaller than the lucrative zero-interest loan that you get on new car purchases. You may even luck out with lower interest rates.

A huge advantage of buying a used car is that it has stood the testimony of time. It speaks for its performance, and you have a fair idea of what to expect from it.

Why should you not buy a used car?

For extensive repair costs. Older models tend to give lesser mileage which add to costs eventually. Also, it takes a significant amount of searching to find out the perfect car for you in the used segment. For new cars you can simply breeze into the showroom for a test drive, but to save those precious bucks, you need to do some serious scouting for the perfect old car.

There you go fellas, these are roughly the parameters you should weigh upon before deciding whether to go for a new car or a used one. You want to weigh your priorities thoroughly before making a decision. Like we said before, research is the key.