Buying a New or a Used Car: Which is a better option?

Some of us dream of buying our own car someday – hopefully something electric or hybrid. A car not only makes travel easier but can also be handy in emergency situations. Moreover, a car with exceptional features gives the owner a sense of pride and prestige. With many makes and models of various car brands being launched every year, choosing an ideal car can be difficult. Also, you need to make a big decision – to buy a new or a used car. Let’s take a look at the benefits of both options to help you make the right choice.

Advantages of Buying a New Car

A Brand New Vehicle

When you buy a new car, you are assured that it hasn’t been used before. The car has the specifications, speed, mileage, and everything else you want. Since it is a brand new vehicle, you won’t find any scratches, dents, or damages. Most importantly, you can be assured that the car hasn’t been in an accident.

Better Financing Options

Banks and other financial institutions offer better loan schemes for new cars. This is because the resale value of a new car is much higher than that of a used car. When a borrower takes a car loan, the car will be used as the collateral for the loan. If the borrower is unable to pay off the loan, then the bank can sell the car to recover the margin of finance. Today, most banks offer loans with lower interest rates and up to 90% margin of finance if you are buying a new car. You only get up to 80% to 85% margin of finance for second-hand cars.

Better Car Insurance Rates

Opting for a new car means opting for better insurance rates. There are various types of car insurance policies available today. There are policies that cover damage or theft of the vehicle, policies that cover injury or damage to another car or person while driving, and policies that cover medical costs in case of injuries. New car owners usually get better insurance rates and a wide range of policies to choose from.

Much Safer on the Road

New cars are equipped with better safety features when compared to second-hand cars. The makes and models that are manufactured today have all the latest safety systems installed, including airbags, cruise control, brake assistance, etc.

Latest Technology

From keyless entry to smartphone integration, automobile manufacturers have been implementing the latest technologies in their models and upgraded versions. They have also been focusing on bringing out models that offer low emission rates, excellent mileage, and better security features. When you buy a new car, you can make use of the best of technology.

Equipped With Warranty

A new car comes with a full warranty. You can make use of this warranty to get your car up and running to its maximum potential within the warranty period. Since the car is new, it will require fewer repairs in the initial years. So you can focus more on car maintenance.

A Range of Makes and Models

When you want to buy a car, you have a plethora of options before you. Even those who have a limited budget will find a range of cars available that are suitable for them. You can study the specifications each car offers and make a choice from the unlimited options you have.

Advantages of Buying a Used Car

Lower Price

Second-hand cars come at much more affordable rates than new cars. If you are willing to spend, say $18,000, on a car, you get both high-end used cars and new regular cars within that range. You can make the most of the opportunity and buy the high-end car instead of opting for a regular one. You could also secure more savings with a used car. Instead of spending a lot on a new car, you can spend less on a second-hand one and save the surplus amount as savings or for personal use.

Lower Depreciation Rate

No matter how new a model is, the value of the car depreciates as soon as you buy it from the dealer. If you plan to sell the vehicle someday, you won’t get anywhere close to the original price or the original price you have paid for. The depreciation rate of a new car is higher than that of an old one. When you buy a used car, you won’t bother about the depreciation rate.

No Hidden Charges and Fewer Customisation Costs

When you buy a new vehicle, the manufacturer could include shipping charges and other hidden fees in the final price. When you opt for a used car, you don’t have to pay any hidden charges. Also, you will save up on customisation costs.

Inspected by professionals

Today most dealers ensure the second-hand cars are in good condition before selling them. When you buy a used car from a reputable car dealer, you can be assured that the car has been inspected properly for issues. All the issues are fixed by technicians and the cars are also refurbished.

The Verdict

Both new cars and used cars offer great benefits. You can consider the following while making a decision:

  • Your budget – If you are financially stable and want to invest in a car, buying a new car is a good option. You can make use of the excellent loan facilities offered by various banks. However, if you have a limited budget, you can either wait for some time to increase your finances to buy a new vehicle or opt for a second-hand one.
  • Why you need the car – Understand your priorities before buying the vehicle. If you have other important financial commitments, then prioritise those before buying a car. If you still need a car, you can buy a second-hand one.
  • Your credit score – If you have a good credit score, you can get a car loan approved easily. On the other hand, if you have a poor credit score, buying a new vehicle at that time could be a bad idea. You could work towards improving your rating and then opt for a new car. But if you urgently need a car, you can buy a used car at an affordable price.

Conclusion

Find an ideal car as per your preference and lifestyle requirements. You can choose a car that offers great reliability, lower fuel emissions, great comfort, and one that is equipped with the latest security and safety features. Most prominent banks offer loan schemes at great interest rates. You can visit comparison websites before making a decision and choose one that suits your requirements the best.

Facebook Comments

Comments

comments

Leave a Reply

Your email address will not be published. Required fields are marked *

5 × 3 =