We have all been there. Sick of taking public transportation everywhere you go. Sick of depending on others for a ride to the store or to the party down the street. You have now decided that you want to buy a car. Do you buy a new car? Do you buy a used car? These are just some of the things you need to pay attention to when you consider purchasing a vehicle. There are pro’s and con’s to both options and in this article we are going to explore them so you can decide what option is best for you.
There is no greater feeling than buying your first brand new car. Having less than 50 miles on the dashboard while breathing in that new car smell is one feeling that can’t be replicated too easily. Being the first owner of the car saves you from any possible surprises from the previous owners had you bought a used car. If you don’t have the cash on hand, financing a new car is easier than financing an older one. Now that I have shown you the light, I must show you the dark. As soon as you drive that new car off the lot you just lost, in many cases. thousands of dollars. A car depreciates in value much quicker than many other assets such as houses and other property. Almost always, a car should not be viewed an investment vehicle, no pun intended.
Now, although you will be missing out on that sweet smell of fresh leather getting a used car has it’s perks. Remember when I told you that as soon as you drive a new car off the lot you just lost some equity in your car? Although your car still depreciates afterwards, that part is usually the biggest point of depreciation so the worst is over. Used cars are obviously much cheaper than the cars original MSRP. Buying a used car gives you many more options to choose from. You can select from many different body styles from various years. If you are on a budget you can still drive a luxury car that is just an older model. Imports become more of affordable and so do those upgrades that were too expensive for you when you wanted to buy a brand new car. As always though, for ever pro there is a con. If you are buying a used car you may have a little bit of time left before the warranty expire or they would have expired by then. Some car companies do not even allow a transfer of the warranty if one of their cars were resold. This is especially alarming because you take a bigger risk by buying a second hand car. As you rack up the miles there is more of a chance that you’ll run into maintenance problems so always be aware of the milage. You don’t know if they got oil changes timely or if they really took care of their car. There are many possible “bumps and bruises” that the car can take and if you don’t know about some it can be costly down the road. Finding a used car that has all the documentation of maintenance is ideal. Consider all of these things and you will be on the safe side.
*** This article does not relate to antique or historic cars ***