One of the dilemmas potential car buyers face is whether to buy a new car or a used one. This article explores the advantages and disadvantages of each option.
According to a National Automobile Dealers Association report, the ratio of used to new car sales of the average franchised dealership was 85 to 100 in 2019. That shows how the used cars market is competitive.
Buying a New Car
Were it not for the high prices, it’s everyone’s dream to buy a new car unless you are a classic car enthusiast.
The main advantage of buying used cars is the guarantee that everything is intact, from the engine and powertrain to the interior and exterior. A new vehicle also comes with the latest features: performance, infotainment, comfort, and safety. With new cars, you also get aftersales services and warranties, and financing options are easily accessible.
On the downside, new cars are costly. For example, the 2020 Nissan Altima’s price is around $24,100, while a 2015 model will set you back around $11,000. New cars also attract higher tax and insurance costs, and worse still, they have high immediate depreciation.
Buying a Used Car
The used cars market gives buyers who can’t afford the latest car models the chance to drive their dream car affordably.
The obvious advantage of buying used cars is the lower prices so you can drive that luxury car you’ve always dreamed of. If you are a fan of the Mercedes-Benz S-Class, for example, the $94,250 starting price for the 2020 model might be too exorbitant. But you can snap a 2010 model for around $20,000. The insurance premiums for used cars are also lower.
The main problem with used cars is the risk of buying a car with mechanical issues or one with several defects and dents. The maintenance costs are also higher compared to new vehicles.
Buying a new or used car has advantages and disadvantages, but generally, new cars are better. If you can afford a new car, fine. But for those who can’t afford new cars, there are used car dealerships that have some fantastic deals. Yes, there is a risk of buying a junk car. Still, it’s easy to separate the wheat from the chaff with vehicle history checkers and computerized vehicle diagnosis.