Cars come in different brands and models; hence, you can never run out of choices when planning to buy one. All you need to do is pick the type of car you want then decide whether you want it in a new or used state. When you determine the make, model and the state of the vehicle, you will be able to make proper budget plans. Therefore the kind of car you choose will determine if you’ll pay cash or be eligible for a loan. Here are the pros and cons of buying a used or new vehicles.
Used Car Advantages
Buying a used car means you won’t suffer a loss since someone else will take the depreciation hit. If you’re shopping with a dealership, most even have a certified pre-owned selection that they have pre-checked for your peace of mind. You will even sell the vehicle at the same amount you bought it at any time you wish. Also, you can take used car loans from your local bank or credit union to buy the car since you won’t suffer the loss associated with depreciation. Besides, you save cash and pay for the loan or car since used cars are affordable.
Used Car Disadvantages
Buying a new car may not be reliable, and you may end up spending more in case of repairs. However, purchasing pre-owned vehicles that are certified could be a better idea to avoid issues that come with used cars.
Also, you don’t have a choice since you can get the car you love, has high mileage and excellent history, but you don’t like its color. So you must be patient and search well before buying a used car.
New Car Advantages
New cars come with warranties, and they require less repairs within the next few years. The less repairs allow you to put your mind on how you will maintain your car. If you took a loan from a dealer, he or she might lower the rate of interest to reduce the sum you would have paid towards the loan. Also, new cars have the latest technologies that make them less costly in terms of fuel consumption. For example, most modern cars come with better gas mileage due to high fuel injectors and lower emissions.
New Car Disadvantages
The upside of purchasing a new car is the high amount you will pay before driving the car off the lot. Also, in the first three or four years, your car will start depreciating no matter how much you bought it or the costs you incurred in maintenance. Once a vehicle depreciates, so does its price too; hence, you will suffer a loss when selling it. Unless your account won’t run dry, there is no point of buying a new car which we all know is expensive.
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Conclusion
You must know which type of car you can afford to budget well. Make sure you clear your car payments within the first three years. You can either pay cash or borrow used car loans when purchasing a car. Lastly, ensure a mechanic checks the vehicle you intend to buy to prove whether it’s new or used.
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