New vs. Used car: Which is the Better Financial Decision?

Whether you are 15 years old lad or a 60-year-old man; you must have crazily loved cars at least once in your lifetime.

But one of the most important truths is that cars don’t last forever too. And we all face that dilemma of detachment sooner or later in our life.

Now, the question is how we can have our most fav car in our life for a more extended period? Should we buy used cars or new cars? What will be the best decision to go with?

Some questions and confusions need to be answered like, due to the economic recession people prefer used cars mostly these days, but is it worth it?

Similarly, buying a new car vs. getting it on a lease, which is the better option?

And, most importantly, how it would impact overall in the long run?

It’s hard to answer all those questions mentioned above, but let’s start discussing the different factors one-by-one.

What will be the Initial Cost?

The first thing which comes in our mind as soon as we make our mind to buy a car is its ‘Initial Cost.’

And to be honest, new or latest model car would eat a more significant chunk of your cost. It may include the new car’s titling, registration fees plus tax to be paid are separate.

Undoubtedly, it will have its own set of benefits, but if the budget is one of your primary concerns, then you can’t ignore the mentioned fact.

So, in this domain used cars will always have a win-win situation due to being cheaper than brand new ones.

Verdict

Winner = Used Cars

What Amenities does it offer?

Everyone likes to crack a good deal, i.e., having a car with all the glitters and gold, GPS, advanced safety features, sunroof, seat warmers, automatic sensors, etc. Not only this but people these days are particular about colors, interior/ exterior features, texture, seating fabric, etc. too.

So, people, these days have become aware of all these facts, and now they don’t consider it lightly. It plays a vital role while deciding what to buy and why should we go for it.

One more fact attached to all of this conversation is that the total customization feature comes with new cars only, so if you can compromise with certain features, then it’s okay.

Otherwise, if you don’t have a preference for certain car amenities or you don’t care about loading up your car with the latest technology, a new car is your best bet here.

Verdict

Winner = New Cars

What about Maintenance of the car?

Maintenance may create an issue when we talk about used cars.
Luckily, one may get extended warranties, but I am not sure about this. And think about the fact if you don’t get any warranty or discount vouchers for maintenance, how would you accumulate the costly repairs now and then. It means there’s a high chance of risk in contrast to new cars. The decision will be yours but weigh the pros and cons of both.
For the latest updates and the upcoming market trends, do read the current blogs on this topic. It will help you in making the right decision.

Verdict

Winner = New Cars

How would the Depreciation effect on it?

This factor goes best in favor of used cars because depreciation hits back and impacts the new car buying process.

According to a research study done by the National Motorists Association,

“It is estimated that the new car will lose approx. 10-20% of its value within the first year of ownership. It won’t remain limited until here, but it will approximately lose 50% of its value within the first five years. Whereas used cars have a great advantage over it as they have slower rates of depreciation.”

Have you ever thought about why used cars slowly depreciate? It is because they have already been “broken in,” and the real owner already got affected by the depreciative factor instead.

Verdict

Winner = Used Cars

What about the Safety of cars?

As we have analyzed all the features up till now that used cars are more reliable and affordable than new ones, but are they as safe as new cars?

Not sure, right?

It is because some of the significant key components which have revolutionized the overall safety dynamics in the world of cars is already not present here. Few of the used cars have these features, but it has no comparison with the ones which new cars available in today’s market offers.

Verdict

Winner = New Cars

What about Car Insurance?

The differences mentioned above can be compromised at any point but what about comparing insurance for a new car to insurance for a used car.

Is it worth it? Although you know, used cars tend to cost less to insure than new cars.

There is a term called ‘Collision insurance.’ It is a predominant factor when determining the cost of car insurance; it’s mostly available with new cars.

How is the cost of insurance calculated?

One determines the make and model of the car, driver’s age, and reliability, etc. So, we get a low price for used cars in this way as compared to new vehicles.

Let’s say you are thinking about how to buy a car in the UK; for this, the convenient option would be getting in touch with a company like Autocoincars that lets you buy your vehicle online if the option doesn’t sound well to you, the local market is always there.

Verdict

Winner = Used Cars

Final Verdict

It’s totally up to you. It is because for some people, the financial aspects and budget constraints while car buying will immediately impact their choices over the new and latest model cars.

For people who are pro in car buying, it is best to decide after you get to know the car’s history and warranty in hand. It is because it will help in outlasting all the cost-related downsides in a second.

Best is to examine the pros and cons listed above, and you are set to go!