One of the most essential decisions you will be making when purchasing a car is whether to go for a brand-new car or a used car. During this decision making process, there are several things that you should evaluate which includes the condition of the used car you are eyeing, insurance policies, purchase price and depreciation value, etc.
This is why we have come up with a short guide to help you make the most preferable choice in terms of buying a brand-new car or a used-car. Take a look at the pros and cons of each!
The basic difference between a used car and a new one is the price, and the risk. New cars are typically more expensive than used cars. There's no escaping the fact that affordable cars are always those that have been used before. However, at times, the reality might be just the opposite. This is when you bring home a used car without thorough inspection and end up spending more on fixing mechanical problems, realizing that your purchase isn’t worthwhile after all. To avoid this we have put together a guide to help buyers feel confident when purchasing a used car.
Reliability and warranty protection - The majority of new automobiles have an excellent track record of reliability, and if something goes wrong, the company's warranty will most likely fix it. Purchasing a new car also eliminates any worries about how the car was handled before you purchased it.
The latest features - New cars are more likely to satisfy the most recent fuel-efficiency regulations as well as contain the most advanced safety features.
Appealing financing deals - When you have strong credit, most car manufacturers and retailers will provide low or no-interest financing options. Because of this, buying a new car may be less expensive than buying a used car.
Not new forever - New cars are only new for a short time. You are likely to have your first scratches on your car in a week or perhaps a month. The floor mats will gather dust and dirt by the end of its first year and the wonderful new-car fragrance may be a thing of the past. Obviously, the monthly installments will still continue for years.
Expensive to buy - Purchasing a new car is expensive. When you are using a car loan, you will almost certainly borrow more than you would need to with a secondhand car. This naturally results in higher interest payments over time.
Insurance is more expensive - Since brand new cars have greater replacement values, they also cost more to insure than used cars.
Lower prices - Used-car purchasers can benefit from the quick depreciation of new car values, which can be as much as 20% within a year and up to 40% after three years. Lower or average prices of used cars also increase your chances of paying in cash or check or placing a bigger down payment. You may also be able to acquire a model with a greater specification than you can ever find at the same price when buying a new car.
A lower loan amount - It is no wonder that used cars offer lower average loans than new cars, considering their cheaper rates. This results in cheaper monthly installments and a lower overall interest charge based on the loan conditions.
Short-term use - If you plan to replace your car in the next few years and only want a car, a used car can be a suitable match. You can easily sell it off when the time comes and get a decent price for it due to its slightly used status.
Limited choices - Unlike New-car purchasers, who can easily choose the features, color, and extras that they desire for a certain vehicle, used-car purchasers will have to be more adaptable when shopping around for their ideal pick to stay within their budget.
High repair costs - The age of a used car, along with a lesser warranty policy, points to the fact that you will be investing extra time and money in the repair. It can cost you much more than buying a new car.
It is not surprising that when it comes to buying a car, everybody is in a different position and likely to have a distinct opinion for what they need. There is no one good option or bad option, but with these, tips should help you make the best decision if you're looking to buy a used car in Saint Louis or any other city. At Chase Auto Group, we provide you with new car loans at a reduced interest rate, which can help you save money over the loan's lifetime. Furthermore, if you manage to obtain a zero-interest loan for used cars, your local bank or credit union may be able to provide you with good financing choices to buy one easily. Nonetheless, it is advisable to finalize your choice after evaluating the pros and cons of new and used cars when at Chase Auto Group.