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Should I Buy a Used Car or New Car?

When buying a car, there a lot of questions asked and considerations made for the right pick. But perhaps the most important question asked is, should I buy a used car or new car? Either way, there are various pros and cons of considering each option. To help you make an informed decision, we take a look at the various advantages of both new and used cars below. Note that although there are many advantages listed for new cars, the advantages with used cars are immense and in many cases can work better to your advantage.

Pros of buying new 

You get what you want. When buying new, you can search or have a dealer get you a car with the right combination of specifications. You can even have it customized to your tastes and preferences before buying.

You are the 1st owner. Should I buy a used car or new car? Well, if you are looking for a car that gives you a piece of mind because you are assured of its clean past, then go for new. A new car hasn’t been in accidents, doesn’t smell funny and has not undergone wear and tear.

Warranty. A new car’s warranty is untouched and comes free of charge. However, you can also buy a warranty for a used car or go the certified pre-owned way.

Latest technology. New cars come with better and more advanced technology. Each new year offers something new as navigational and multimedia interfaces continue to evolve. So, if you are a tech enthusiast or want to feel part of the latest car trends, go for new.

Higher fuel efficiency and lower emissions. Car manufacturers are continually looking for ways to improve car fuel efficiency while simultaneously improving the power and emission rate of their models. New cars offer better mileage on gas and are great for the environment.

Financing.Credit unions offer buyers lower financing rates on new cars because they are inherently worth more and have not already depreciated.

Pros of buying used  

Price. This is definitely the biggest factor in deciding whether to buy a new or used car. It goes without saying that used cars offer a more affordable option. So, if you are on a tight budget, get a used car dealer and you might just get the perfect car for that price. A relative advantage of used-car prices is that you can be able to step up to a better model.

Proven. A car that has been in use for several years and is still in good shape is proof that the model is reliable. A new car that has just been released could expose you to engineering and technological challenges that have not been extensively tested in the real world.

Lower depreciation. Although a second hand car will still lose some value after purchase, it will do so at a lower rate than a new car. A new car starts losing value there and then. But a used car, you might even sell it at the same price you bought it for after a year.
Insurance rates. Insurance rates are also affected by the age of a car just like financing. Used car insurance rates are less expensive.
So, should I buy a used or new car? With all the above surefire tips, you can trust to not go wrong in making your decision. Enjoy your new ride!

Sources:
https://www.wellsfargo.com/financial-education/credit-management/better-buy-new-used-car/
http://www.consumerreports.org/cro/news/2012/08/is-it-better-to-buy-a-new-or-used-car/index.htm


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