Many factors go into your decision to buy a used car over a new car. Many car buyers assume the main point of difference between new and used cars is the price and condition. Clearly a used car will be more worn, and be in less perfect condition. For that sacrifice you can expect to pay significantly less than price of a new car.
However, there are many important variables must be factored into your selection. Below are a few.
Buying a Car: Factors You Should Take Into Consideration
What can you afford to put down, and what can you afford per month? Do you have an existing car to sell? What will you get for your trade-in? Your income and down-payment may guide your decision to purchase new vs used.
Most new cars come with a limited warranty, however extended warranties can be purchased for additional coverage. If you don’t like the dealership’s warranty (either because of the price or coverage), often you can opt for a competing car warranty that can be purchased outside the dealership. Used cars usually come with no warranty, but reasonable car warranties can be purchased. (Like at Ensurall! We sell extended car warranties that cover both new and used cars.)
Determine why you are buying a car in the first place. It sounds obvious, but people drive cars for different reasons. So take a moment to think about why you need a car.
For instance, buying a car for your son or daughter who is travelling long distances to college every day means you have different needs than someone who is buying a used car simply to the grocery store and back.
The Perfect Car
If you can afford it, why not buy your ideal car? Pick something you know you’ll love for years to come. Throw in your colour of choice and all the add-ons and accessories! This probably means you’ll want to buy a new car, as you won’t have much choice in the details of a used car.
Getting your dream car may not be a realistic goal, however. If you’re buying your first car, you may have to settle for something a little less flashy but more practical. Or perhaps you’re willing to sacrifice a few bells and whistles in order to get a car you really like – buying used may mean you can get a car you really love in your price range – it just won’t be completely customized to your tastes.
This is a major factor for new cars. Once you buy a new car, the value immediately begins to decline. The steepest decline is within the first three years. This hurts if you are the type of car driver that buys a new car every few years and uses the value of your old car to help pay for the new car. While your four-year old car may still be in near mint condition, its value may be less than half of what you paid for it!
If you want your car to keep a more steady value, or you plan on trading in your car again in a few years, it might be best to think about buying a used car.
Used Car History
One of the largest challenges when buying a used car is not knowing what may go wrong, or what exactly has already been done to the car. You can do hours of research on the make of your car and your used car’s history. You can even have a mechanic verify its condition, but you still won’t know everything about it.
Thanks to the wonders of the Internet, you will be in a far better position than in years past. But you will still be buying a stranger’s car whose past is a mystery.
Reliability and Safety
You will likely get a minimum of three or four years of no-worry driving out of your new car before any major repairs are needed or any parts begin to wear out.
With a used car, you are already buying a car that has seen wear and tear and may need major repairs at any time. If safety and peace of mind are a concern, a new car is less likely to break down and leave you in an uncomfortable situation on the roadside. If this is your only issue, however, a full coverage car warranty can lessen this concern.
It is easy to gain knowledge about quality of used cars through online research. However, if you don’t have the time to do this work, you may unknowingly buy an overpriced dud. If you’re not one for putting in some thorough research, buying a new car may be a better option for you.
New vs Used Car Experience
Stepping into your new, pristine vehicle with all the accessories you ordered is a delight. (And don’t forget that new car smell!) That’s an experience a used car can’t duplicate. But your attachment can turn bitter after you get your first scratch. When you decide to sell, and your beloved vehicle gets next to nothing on a trade in, it can be painful.
You probably won’t have such an attachment to a used car. That’s a good thing when you get a dent. And when you turn in your used vehicle, there’s rarely any expectation of getting significant money from the sale.
Whether you buy new or used, protect yourself from unexpected car repairs with an extended car warranty! An extended car warranty ensures your car continues to be covered in the years when it matters most, when car problems and breakdowns frequently occur. Check out Ensurall’s extended car warranty plans to learn more about purchasing a warranty for your car.