There are many things to consider when purchasing a car. It is not enough to pick the make of your car. You also need to decide if you want to purchase a new or used vehicle. A brand new car may come with a better warranty and have the most recent technology. However, it’s more likely to be less expensive than a used vehicle and will appreciate faster.

Warranty

The benefit of purchasing a new vs second hand vehicle is that the warranty comes with all new cars. The warranty should cover major repairs and problems that occur within the first few months of ownership. The majority of new cars will only need minor repairs so that you can concentrate on the maintenance.

Comparing this to buying a used vehicle, which may not be as reliable due to its age. An older car might require additional repairs. These repairs may not be covered by your warranty like they would with a brand new car.

You do have the option of purchasing a certified used car. A certified preowned (CPO car) has been inspected, resold by manufacturer, and may come with a warranty.

The technology has improved and cars are now more reliable. Some models won’t require repairs until they have driven more than 100,000 km. You may find them close to ten years old at that point. A three-year-old used car can be bought and sold within five years. You might be able to get it sold at a similar price as you bought it.

Consumer Reports, as well as other impartial reviews from third parties, can help you find the best model.

Price

It is more expensive to buy a new car than a used one. The dealer may offer financing for new vehicles at a lower interest rate in order to make the purchase attractive. This will reduce your interest over the life of your loan. Some dealers even offer a zero rate loan for new vehicles.

While you won’t find zero interest loans for used vehicles, there are still options available through your local bank and credit union.

Insurance

Your insurance rates could be lower for a used vehicle depending on its model. One reason is that an older model can be replaced at a fraction of the cost of a brand new one.

If you’re in your 20s, paying high rates for insurance due to your age, buying and insuring an older car may save you money.

Technology

New cars will come with the latest technology. This means that they will offer better gas mileage, and less emissions. Hybrid options are also available which could help you reduce your transportation costs each month. A better technology platform can make it easier to connect your smartphone and listen to music or locate your way with GPS.

Depreciation

It is important not to think of buying a car as an investment. Cars are assets, which will depreciate with time. It loses value when you drive your new car off the lot.

You can buy a used car and let the previous owner take the biggest depreciation. When it comes time for you to sell your car, you might be able to recover some of the costs by purchasing used and maintaining it well.

Club auto offers more information about the car you are looking for.

Categories: General