While it is nice to think of just
buying a brand new car, most people buy used. Three times as many
used vehicles are sold each year than are new cars. Your budget and
attitude determines what is right for you. If you can't decide, here
are the benefits and drawbacks when buying used and new.
Benefits of a new car
You will receive a comprehensive
manufacturer's warranty of at least three years or 36,000 miles.
Some even go as long as 10 years or 100,000.
A new car will have the latest
safety, comfort and convenience features available. You
are the first owner and will face no surprises that have been hidden
from you. You don't have to worry about mechanical problems or
hidden accidents.
New car drawbacks
A new car cost significantly more
than a three-year old used car. It even goes beyond the purchase
price. Comprehensive and theft insurance costs are usually higher
when buying new, even though discounts are available for newer
safety features.
Have you heard that the moment you
drive it off the lot, it is no longer worth what you just paid? It's
true. A new vehicle will lose 25-40% of its value immediately. This
means that you have to own it longer to recoup your loss. This could
mean that you can't trade it in when a new model looks better next
year.
Benefits of a used car
Used cars are much cheaper than a new
model. Your comprehensive and theft insurance costs are less with a
used car. The car has already faced the majority of its depreciation
when it was first purchased, making your loss in car value less. You
may be able to afford a higher priced package for the same price as
a new standard package vehicle.
Used car drawbacks
You don't have any idea of the
maintenance and repair history of a used vehicle. You won't usually
find a new-car warranty for a used vehicle. If you do, often you
have to pay for it. You will usually have higher maintenance costs
due to the higher mileage on many used vehicles. The safety and
convenience features are not as new or as
nice.
Equal Housing Opportunity (c) Copyright 2008 RateTake.com