While it
is nice to think of just buying a brand new car, most people buy used.
Three times as many used vehicles are sold each year than are new cars.
Your budget and attitude determines what is right for you. If you can't
decide, here are the benefits and drawbacks when buying used and
new.
Benefits of a new car
You will receive a comprehensive
manufacturer's warranty of at least three years or 36,000 miles. Some even
go as long as 10 years or 100,000.
A new car will have the latest safety, comfort and
convenience features available.
You are the first
owner and will face no surprises that have been hidden from you. You don't
have to worry about mechanical problems or hidden accidents
New car drawbacks
A new car cost significantly more
than a three-year old used car. It even goes beyond the purchase price.
Comprehensive and theft insurance costs are usually higher when buying
new, even though discounts are available for newer safety
features.
Have you heard that the moment you
drive it off the lot, it is no longer worth what you just paid? It's true.
A new vehicle will lose 25-40% of its value immediately. This means that
you have to own it longer to recoup your loss. This could mean that you
can't trade it in when a new model looks better next year.
Benefits of a used car
Used cars are much cheaper than a
new model. Your comprehensive and theft insurance costs are less with a
used car. The car has already faced the majority of its depreciation when
it was first purchased, making your loss in car value less. You may be
able to afford a higher priced package for the same price as a new
standard package vehicle.
Used car drawbacks
You don't have any idea of the
maintenance and repair history of a used vehicle. You won't usually find a
new-car warranty for a used vehicle. If you do, often you have to pay for
it. You will usually have higher maintenance costs due to the higher
mileage on many used vehicles. The safety and convenience features are not
as new or as
nice.
