You have thought about purchasing a car – now the conflict of buying a new or used car has crossed your mind!
Your old clanker gave up on the side of the road, and it’s time to trade in, and although the thought of a new car can allure you, it may not be your best long-term option.
You need to think practically and ensure you do not spend more than what you have in your pocket. You need to weigh up the pros and cons and ensure that you keep your personal pros and cons on those lists too!
What is a Used Car?
A used car is known as a second-hand vehicle. This means that it was previously owned by someone else. A used car could have had one or more owners before.
Usually, dealerships will ensure nothing major is wrong with the vehicle besides a few scratches or dents!
Should I Buy a New Vehicle:
The Pros of Buying a New Vehicle:
● Reliability and Warranty Protection: You will find that most new cars have good reliability insurance, and if something were o go wrong, the costs would be covered by the manufacturer – within a specific time frame and conditions, of course!
● Latest Gadgets: When you purchase a new vehicle, it will most likely be the latest model. This means all the latest tech and gadgets will be installed and ready to go. There is no need to worry that you are behind the times or that certain functions won’t be compatible with your devices.
On the other hand, this will also mean that your vehicle will be kitted with the latest and best safety measures and materials.
● Peace of Mind: When purchasing a new car, you will most likely have greater peace of mind, knowing that your vehicle will not break down on the side of the road anytime soon.
The Cons Of Buying a New Vehicle:
● More Expensive: Of course, since you are purchasing a new vehicle, the upfront and down payment will be more significant.
● Faster Depreciation: When you purchase a new vehicle, the depreciation value goes down much faster than a used vehicle. Standard Bank says, “As soon as you drive your vehicle off the showroom, you can lose up to 20% of its value”. The car’s value will be much lower when you decide to sell it.
● Higher Insurance: Because a new vehicle’s replacement value is higher than a used vehicle, their insurance cost is higher.
● It May Not be New For Long: Yes, once the excitement has worn off and a month or two has gone by, your new expensive car is no longer fresh. Unfortunately, that is the way it goes.
Should I Buy a Used Vehicle:
The Pros of Buying a Used Vehicle:
● Lower Price Point: Whether you purchase your used vehicle upfront or have a down payment, the price point will be significantly lower than a new car. The depreciation value has already decreased, and you will be getting more vehicle for your money.
● Lower Insurance: A used vehicle will have a lower insurance rate since the vehicle’s replacement price is lower.
● Thoroughly Inspected: You may think that you are setting yourself up for failure if you are purchasing a used car. However, that is not the case. A used car has been thoroughly inspected, cleaned, and most likely fixed.
You may even find some used cars have a new engine or gearbox. This means a bang for your buck.
The Cons of Buying a Used Vehicle:
● You Never Know: You never really know what you are getting into when you purchase a used vehicle. Even if the vehicle has been thoroughly inspected, you don’t know its exact history – and this could cause issues late down the line!
● High Mileage: When you purchase a car, you know the higher the mileage, the more difficult it is to sell later down the line. Also, higher mileage means more chance that the car may break down any minute.
● You Get What You See: Unlike a new vehicle, where you can decide the features you want in the car, with a used vehicle, what you get, is what you get. There isn’t much room for internal customization.
Last Thoughts Before Making Your Purchase:
When you are purchasing a vehicle, whether used or new, you need to ensure you go through all inspections and routes before proceeding.
And if you are purchasing a new vehicle, the repair cost will be less over time, but you will make up for that in your downpayment each month when you are purchasing a new vehicle.
Trading in a new vehicle will be easier, but you could still easily sell your used vehicle in a few years for a reasonable price.
No matter which choice you decide to make, ensure that you are financially able to afford it for the long run – do not let the thought of a new car push you to purchase something that you cannot afford.
Make sure you look at all your options and take a day or two before you make a purchase. Don’t buy on impulse because it could result in a purchase you regret.
6 Things To Do Before Taking Your Used Vehicle Home:
If you have decided that you would like to purchase a used vehicle, here are the 6 vital things that you need to do before you take your brand new – used vehicle home with you:
- Get the car and its papers inspected
- Transfer the registration certificate into your name
- Get used-car insurance
- Ensure all issues have been fixed before you take your first drive
- Check the vehicles milage
- What is the gas consumption – ensure it doesn’t use more gas due to an issue with the vehicle
Conclusion:
New or Used – the truth is, you never honestly know what you are going to get. And although a new vehicle comes with more guarantees, a used vehicle could save you in the long run. Your personal preference is all it comes down to at the end of the day.
