It can be very tempting to purchase and own brand-new car. Car dealers usually offer easier financing for new cars, especially if you have decent credit history. However, buying a new or used car, can be either a good or a bad decision, depending on your situation. With that in mind, these pros and cons should help you make a better decision when shopping for a new or used car.
Pros Of Buying A Used Car
New Cars Quickly Depreciate- the moment you drive the car away from the dealership office, you instantly lose a few hundred or thousand pounds from the original car value. Within the first year of car ownership, you may lose up to 25% of the value. Used car depreciate much slower and if you sell it next year, you won’t lose much money.
Cheaper- for used car owners, the quick depreciation of brand-new cars is a boon. If you can only afford the base trim of a new car model, it is possible to get mid-level or even top trim levels if you are willing to buy a used car that’s two or three years old. In some cases, you may get a relatively new used car that’s 40% cheaper than the original sticker price.
More Models- hundreds of new car models are released each year by major manufacturers around the world. The used car market is more appealing for some buyers because it holds more variety. It’s still fairly easy to get a discontinued model if it matches your preferences.
Lower Insurance Costs- insurance cost is another factor to consider. The less value your car has, the less the insurance company is required to pay if your car is lost or damaged. Depreciation and current car values are important components when determining insurance premiums.
Cons Of Buying A Used Car
No Warranty- user car dealerships don’t always offer an extended warranty, except for minor repairs and part replacements for a few weeks after the purchase. The original warranty from the manufacturer can be extended for a fee, but it will diminish the value proposition of used cars.
Unknown History- if the used car isn’t certified and the previous owner didn’t keep a record of maintenance and repairs, you won’t know whether the car was properly taken care of. The car can be repaired after a major accident, but it may still have hidden structural damage.
Obsolete- over the last ten years, automotive technology has been improving and evolving. A three-year-old car may not have the latest gadgets and sought-after features of new cars. If you are eager to get the most advanced features, you shouldn’t buy a used car.
Contact Nationwide Vehicle Rentals
To learn more about the pros vs cons of buying a used car, contact Nationwide Vehicle Rentals today and select from a wide range of late model cars, vans and more!
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