Reasons to Buy a New Car over a Used One
You might now be thinking of buying a car. But here comes the question of whether you should buy a new or used car. You might be buying your first car or simply replacing an old car with another one. No matter the reason, you should know what you are getting into before making your decision. The following will show you the benefits of buying a new car over a used one.
You can save more money with a new car
Resale value is an important factor that drives people toward used cars, but it shouldn’t be your primary focus. A new car always has a better resale value than a used one, so unless you plan to keep the car for five years or less, it is recommended to buy the newest model of the same make and model as yours, which gets manufactured every year.
This way, you can sell your old vehicle for much more at auto auctions than their price on the lot of any dealership. And if you do decide to sell it yourself after three years (which most people do), then you would almost get the price of a brand-new car.
You can easily afford more auto loan payments with a new auto loan
The auto loan rates for used cars are always higher than those for new vehicles. This means that you have to pay more interest on your auto loans if you choose to buy a used car over a new one. In addition, you have to spend more money toward depreciation if you decide to sell it after only two or three years without keeping it for at least five years.
New cars have lower auto insurance premiums
Auto insurance companies factor in the resale value of any old vehicle when calculating the premiums they charge their customers according to how much they would have to spend fixing or replacing it if it got into a car accident. On the other hand, new cars are considered safer and have much higher safety ratings than used cars.
You can get a new car with a lower auto loan amount
You can own a new car without spending too much. You need less money to buy a new car because auto loan rates for new vehicles are consistently lower than those for used vehicles.
A new car has a warranty that covers most problems for three to four years
Used vehicles usually don’t come with any warranties, which could leave you stranded if your car breaks down or needs expensive repairs soon after buying it. However, manufacturers’ warranties cover most of the problems that could occur in the first few years of owning your new car.
You can get a new car with better auto financing options
A new auto loan always gives you more auto financing options than an auto loan for used cars, no matter how bad your credit rating is or how much money you owe on any other auto loans you currently have. The reason for this difference in lending terms is that banks and auto lenders factor in the vehicle’s resale value when deciding how much they will lend to whom.
New cars are kept up to date with the latest technologies
New vehicles are always equipped with the latest in-demand features that most consumers want in their vehicles, while most of the used cars do not come standard with these features. This means that there might be several types of auto parts that are not readily available for used vehicles, which is primarily an issue if your car breaks down outside of the warranty period.
New cars can come with auto financing incentives
Car dealerships will give out auto financing incentives to attract more buyers toward new vehicle models instead of used ones since new vehicles have better resale values than used cars do. These auto financing incentives could include low auto loan rates and extended warranties on certain vehicle parts even after the manufacturer’s warranty expires.
Your insurance company might cover some or most auto repairs on a new car
Auto insurance companies usually offer auto repair services that would only cost you $5 to $10 per month to use when you drive a new car instead of a used one. This means that you would not have to pay auto repair shops for auto repairs on your new car, which is especially valuable if your old vehicle has high auto insurance premiums because of its poor safety rating or low resale value.
New cars are more reliable than used ones
All vehicles depreciate with age and use, but most people tend to sell their cars after only two or three years since they want something newer and better instead. This leaves most used cars under an owner who does not know how to maintain their vehicle properly, which usually makes them more prone to auto failures than newer vehicles that still come with manufacturer’s warranties.
Buying a new car is always the wiser financial decision than buying a used car because of all the extra benefits it offers. Buying a new car will give you auto insurance discounts, lower auto loan payments, better auto financing options, and most importantly—more reliability.