Buying a car can often be a time-consuming process because of all the decisions that need to be made due to all the choices that you have. Not only do you have to decide the make and model of the car but also minor details such as color and size. An important decision to make is whether you purchase a new or used model as this will directly affect your financial situation.
We’ve created this guide to show you the positives and negatives of each option allowing you to make an easy decision.
Advantages Of Buying a Brand-New Car
By buying a brand new car you have the option to customize to down to your exact features, whether this is down to the specific technology or the color of the interior and seats. You don’t have the option to do this with used cars as they are sold as they are in most cases. If you like the customizing aspect then a new car is the ideal option for you.
With a brand new car you will often get a long term warranty and its not unusual to have a warranty of over five years. The other benefit with a new car is that it’s less likely to break down anyway which is why the manufacturers are so open to having such long warranty periods.
Although you can get warranties with used cars, you will often have to pay extra for this and it will often only cover certain types of repairs and faults.
The main benefit of a new car is that it’s brand new and never been used. This means it’s never been in any accidents or been badly treated. It even will have that new car smell and no wear and tear with a clean history.
Newer cars will have the latest technology built into it. This technology helps to improve fuel efficiency whereas it also improves the driving experience such as cruise control.
Higher Fuel Efficiency And Low Emissions
Car companies are under pressure to make their models more fuel efficient and environmentally friendly. So by buying a new car they will be even more efficient than the models previously saving you money in the long run.
Buying a new car is much less hassle than a used version because you can simply go into the dealership and tell the sales rep the model that you want and then they will do all the work. With a used car you’ll have to do all the work yourself including checking online listings, visiting local car lots and private sellers. You’ll be paying for a more premium hassle free process.
Disadvantages of Buying a New Car
The main disadvantage of buying a new car is that it depreciates rapidly in the first two to three years. This essentially wipes thousands of dollars of its value, although used cars also depreciate this doesn’t happen as quickly as it does for new cars.
New cars are often running with new technology and engine system and although this is often an advantage this can often come with problems leading to additional issues and recalls meaning that you could lose your car for a period of time whilst the manufacturer repairs the issue.
Advantages of Buying a Used Car
The biggest advantage is that you won’t experience the huge financial depreciation that new car owners experience. New cars lose around 20% of its value as soon as its driven off the showroom floor. Typically, after three years most cars are worth less than half of their original price. You can avoid this by purchasing a used car.
The cost of insurance is affected by the overall age of the vehicle which causes older used car to be cheaper to ensure in most cases. Before you make a final buying decision you can get several quotes using price comparison sites to see how much it will cost to insure. This will make a large difference especially if you’re younger when it’s typically more expensive in general to get insured.
Longer Factory Warranties
Because factory warranties are getting longer and longer these are often extending into the future owners of the vehicle so if you buy a used car it can often be still under factory warranty if it was manufactured in the last three to four years.
If you compare the same model of car but one is used and one is new, the used version will always be cheaper. Because of this you can often end up buying the used model that is one above the new version, allowing you to get a nicer car for your money.
You might not get the customization to build a car to your perfect specification, but with used cars you do have a wider selection of possible choice. Although this can make your decision time longer you’re more likely to end up with your ideal choice.
Disadvantages of Buying a Used Car
Naturally a used car has a higher chance of needing future repairs compared to a new model and is more likely to break down. Its important to remember that technology is improving all the time meaning that cars are lasting well over 100,000 miles before they begin to need any serious repairs other than general maintenance.
Compromise on Features
When you’re shopping for a used car you may not be able to get your perfect car so for instance you may need to compromise on the color to get a car with your ideal mileage and history. If you are strict with your requirements, then your search may take longer than usual.
Nearly New Cars
There is a third option when buying a car which is buying a nearly new car directly from the dealership. These cars have notoriously been bought by the dealership to meet sales target and gives you the best of both worlds as you get one of the latest cars on the market but without the instant depreciation that a new car usually has.
Nearly new cars will have only covered a few thousand miles, and the choice can sometimes be limited because it’s up to whatever the dealership has in stock but it does mean that you can sometimes grab a bargain.