Buying a new car is an expensive ordeal, and, like any investment, you want to make sure you get it right. The first decision you’ll have to make is whether you want to purchase a brand new vehicle as opposed to a second-hand one. You’ll have to juggle cost with reliability; do you want a cheaper car to act as a stopgap until you can afford something better? Or do you want to pay more for a car that will last? This article will investigate the benefits and drawbacks of buying new or used, and hopefully it will help you come to a decision.
The Benefits of Buying a New Car
- A new car will come with a full manufacturer’s warranty, which means if the car suffers a fault within a select time period (normally 3 to 7 years, although some companies offer as much as 10) then the manufacturer will repair it free of charge.
- The manufacturer will provide additional special offers to entice you, such as interest-free finance. This means you can pay off the value of the car over a select period of time, without being charged extra for not paying in one lump sum.
- Rather than collect the car from a private seller or dealership, you are able to request the car be delivered to your home, saving time, money, and the worry or driving a new vehicle in an unknown location.
- You can customise a new car according to your personal wants and needs; many cars can be fitted with additional add-ons to meet your specification requirements.
- You are guaranteed to get receive finance from car credit providers like Car Max Finance (www.carmaxfinance.co.uk/), so even if you have bad credit you can still purchase a new vehicle.
The Drawbacks of Buying a New Car
- The cost of buying a new car will far exceed the cost of buying a second-hand vehicle.
- New cars depreciate in value exceedingly quickly; even driving a new car away from the company showroom will wipe hundreds off the value of the vehicle. This depreciation is most significant within the first year.
- Unless you find the exact model you want from a dealership, new cars have to be ordered from the manufacturing factory, and so can take weeks or months to be delivered.
The Benefits of Buying a Used Car
- It will be much cheaper than buying a new version of the same model.
- You may be able to afford a better quality, better equipped car for the same amount of money as buying a brand new, lesser quality/equipped car.
- Your car won’t depreciate in value anything like a new car, and the older it is the less concern.
- You are not restricted to buying from a dealership, and so have many more options and opportunities to find a car that is right for you.
The Drawbacks of Buying a Used Car
- A used car will not come with any form of warranty, although you will still have consumer rights if the vehicle is faulty. You will be able to purchase a warranty from an independent provider, but failing this, if it breaks, you need to fork out to fix out.
- You don’t know the exact history of the vehicle; even with a full service history you can never be 100% certain you’re not being misled or investing in a faulty car.
- Used cars tend to cost more to run and maintain, especially with the modern fuel efficiency of new cars.
- You won’t get any special offers and you can’t choose the specifications you might like or need.
Whether you buy new or used, the most important thing to remember is to set yourself a budget, and stick to it. In today’s market, you have a great deal of purchasing power, especially with new cars; so don’t be afraid to haggle on the price to meet your terms. However, if you can’t agree on a price that matches your budget, look elsewhere; you’ll soon find a car that suits you perfectly!
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Nick James is a freelancer writer and a blogger..