New vs. Used

August 20, 2014

Everyone that is going to buy a car will have to decide if they’re going to buy it new or used. Many times, the answer to this question can be a complicated one to find and will depend on the specific needs and desires of each individual. These needs will determine the worth you’ll give to things like luxury, technological advances, the car color, and the amount of depreciation it will suffer during the time you own it, among other things. However, the two options have advantages and disadvantages that we have to know before we make a decision that we could later regret.

The advantages of a new car are:

  • Better warranties – New car warranties are extended for many years and have better coverage than used ones, even if the used cars are certified. Throughout the policy’s duration, the dealer or the manufacturer repairs most of the car flaws. Many of them also include services like road assistance and recurrent processes like oil and filter changes that reduce the overall costs of maintenance. During the first years of the vehicle, repairs or replacement of tires, batteries or breaks should be unnecessary. In the case of used cars, warranties, when they are available, are limited, and these types of repairs and replacements can be necessary at any time. Other than the possible savings, better warranties give owners the peace of mind that they will cover any issues with the car and they won’t have major problems.
  • Better financing – Usually, financing for a new car is less expensive, gives you more flexibility in terms of payments and the ability to include the insurance costs in the financing.
  • The best and newest – In an ever-changing market, only with a new car you can make sure to have the latest innovations in technology and safety. In one or two years, a car model can change enough to be completely different from the one of the previous year. For many people this is not important, but for many others, their car is an extension of themselves, a status symbol, and a reflection of who they are, making this a determining factor.
  • Vehicle history – Since you are the only owner the car has ever had, you can have the peace of mind to know when and what has been done to it without worrying about the previous owners driving habits or any problems that they can cause you in the future.

The advantages of a used car are:

  • Better initial price and less depreciation – All cars depreciate annually between 15% and 20%. The first two years depreciation is bigger and this percent reduces sporadically as time goes by. When you buy a used car, you don’t have to pay the initial depreciation that is absorbed by the original owner and you can obtain a vehicle with similar or better features for a fraction of the price.
  • More for less – Many experts say that buying a car that’s 2 or 3 years old can be a good selection because it could still include warranties from the manufacturer while obtaining a car with minimal millage and technologically similar to the new one. Also, extra features or luxury items can put a new car over your price limit, but the reduced initial price from the used car could allow you to add them to your final purchase.
  • Like new – In the last few years, the sale of certified used vehicles has greatly increased. Specialized companies that certify their quality and functionality put these vehicles through a variety of tests and repairs. In many cases, additional warranties are granted as a way to give buyers more tranquility on the fact that they are making an intelligent purchase and so they have a better idea of the conditions in which previous owners kept the car.

These are just some of the factors to consider when you decide what kind of car you want to buy, but there are situations that could incline the balance for one side or the other. For example, if you expect to have the car for many years and give the necessary care to it, is better to buy a new car because in the long run, it will give you less problems and have a lower maintenance cost. On the other hand, if you have risky driving habits, you will change it in less than 5 years or your budget is limited, a used car will be a better option. After some search and analysis, your needs and realities will take you to the best option for you and to answer the question of new vs. used.

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