If you are getting ready to purchase a vehicle, you may be thinking about the pros and cons of the total cost of new vs used car buying.
Many people assume that purchasing a used vehicle means purchasing a car with a whole slew of issues, but that isn’t true! Despite the stigma of older vehicles, they prove to be as reliable as newer ones.
Regardless if you are looking to purchase a car, new or used, it is always essential to think about how much you are willing to put down and where your credit currently stands. You may also want to think about if you will need a co-signer before you even head to a dealership because you may need one if you don’t meet the credit requirements.
In this brief article, we will go over the advantages and disadvantages of buying a used or a new vehicle so that you can make an educated decision.
Benefits of a Used Vehicle
There are plenty of significant advantages of purchasing a used car over buying a new one, such as lower car insurance, maintenance, and reliability. Buying a car used car can also save you a lot of money while having a reliable mode of transportation. For more details click here now
Lower Car Insurance
It’s no secret that used vehicles cost less than newer ones, but most people don’t know that premiums for used cars tend to be a lot lower. The lower rates are because lower value vehicles don’t cost a lot to replace or repair. After all, parts for the used car are cheaper.
Maintenance
Many people assume that older vehicles require way more routine maintenance and repairs because of the wear and tear on the vehicle, but they don’t; they need the same oil changes, tire rotations, and brake repairs. . Click here helpful site
Older vehicles nowadays also can last a lot longer, and some can go well beyond 200,000 miles, making them extremely reliable. You can check out the National Automobile Dealers Association, also known as NADA or J.D. Power, to research new and used car prices.
No Hidden Fees
New cars at dealerships can come with hidden fees like dealership preparation or destination fees. Unfortunately, most people aren’t aware of those fees until they sign the papers for their new vehicle.
Used vehicles don’t typically come with those hidden fees; if anything, there may be an additional documentation fee, but that usually only costs an extra hundred dollars, depending on the dealership.
Disadvantages of Used Cars
Although buying a used vehicle can be the cheaper option, there are some downsides to owning a used car. You cannot customize the vehicle the way you want it before you purchase it, and you aren’t the first person to buy the vehicle and drive it off the lot.
Color and Feature Selections
When you purchase a used vehicle, you may only have a couple of different color and feature options for a particular model. You won’t have the luxury to customize your vehicle to have that sunroof or a specific color at the dealership.
Financing Is Expensive
If your credit isn’t where you want it to be, and you can’t get approved for a decent rate, you may find yourself stuck with a higher monthly payment or higher down payment.
Some lenders also see a used car as a higher risk, so sometimes they aren’t willing to give out loans. If you find yourself in this situation, you may want to consider car dealerships that offer in-house financing.
Benefits of a New Car
Brand new cars can have many good advantages, such as advanced technology, more financing options, and bragging rights to show off a shiny brand new car.
Before you head over to a new car dealership, make sure to check out the benefits and disadvantages of purchasing a new vehicle that you may not be aware of.
Easier Shopping
When you purchase a new car, they are already assumed to be perfect, so you will not need to take it to a mechanic to be inspected. You can also find your ideal vehicle with the color, features, and additional package options that you want.
Better Financing and Rates
New car loans usually have better interest rates as long as you have suitable credit and down payment. In addition, many dealerships will offer plenty of incentives to purchase a newer vehicle.
Advanced Technology
New cars carry more features like backup cameras and built-in GPS for performance, style, and comfort. Unfortunately, some older and used vehicles don’t have the latest advanced technology and updates.
Disadvantages of New Vehicles
Even though it may seem like buying a new car is the better choice, some disadvantages need to be addressed. A shiny new car is fun to have, but the debt and higher insurance may not make it worth it.
Depreciation Rate
Many people think that purchasing a new vehicle is an excellent investment that will last them a long time and can be great to use in a future trade-in, but that is far from the truth. Most vehicles lose about 20% of their value when you off the lot, and over the course of the first year of ownership, that value can increase to 30%!
More Debt
Newer cars naturally cost more than used vehicles, and they can cost even more in interest if you are financing that vehicle. With that added interest, you are paying more than the new car is worth throughout the loan.
Higher Insurance Premiums
If your new vehicle were to be involved in an accident, it would cost more to repair it than it will to repair an older vehicle because your newer vehicle’s parts and labor cost more. Replacement value for a new car is also a lot more than an older car, so your premiums are also a lot higher based on that.
Sales Tax
Depending on the state you live in, you will be subject to higher sales tax on your new purchase. The higher the price of the car, the higher the sales tax.
New Vs Used Car Buying
Now that you know the advantages and disadvantages of new vs used car buying, you can make your final decision. When you are in the market for looking for the best used car inventory, reach out to Gates Auto in Columbus, Wisconsin.
They will work with getting you approved, and they can work with you regardless of what credit you have.
Learn more about different methods of performing a secure payment when buying a used or new car, on this website: www.advanceautocars.com
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