A car is an investment, so should you buy new or used?

While public transport is a way to get by, nothing quite matches the convenience of owning your own car. You have complete control of when you head out, instead of being dependent on bus and train schedules. Moreover, you don’t need to worry about leaving a location before the last bus for the day departs. A car also allows you to easily carry more items with you if need be. Bringing the supplies to picnic is much easier in your own car than lugging around a huge backpack on the bus. Of course, cars can be quite expensive, so that might make you hesitate on buying one. This guide will go over whether you’re better off with a new car or an old one.

Know Your Budget

Before getting into the details about why a car might be right for you, you need to consider the most effective way to buy the car itself. More expensive cars come with better features, such as heated seating, cruise control, better transmission, and more robust safety features. Of course, you may not have the money to spend on a car that is packed to the brim with features. In this case, you might want to consider financing options. This way, you can buy something that is good for the environment and is fun to drive without emptying your bank account.

Old or New Car?

Whether you’re paying out of pocket or using a loan, you need to know if you’re buying a brand-new car or a used one. Because automobiles can easily last for a decade or more if they’re well-maintained, even a used car can be a good investment. There are advantages and disadvantages to both approaches.

Advantages of a New Car

• Peace of Mind

One of the primary people buy new cars is peace of mind. The vehcile has been quality-checked at the factory before being put on a lot, and you can rest assured that there are no mechanical issues with it. Most car salespersons are determined to make sure you don’t leave the lot without making a purchase, so they might underreport the issues of a used car. With a new car, you don’t have to worry at all about issues under the hood or hidden dents. With an old car, there will always been some service charges you’d need to make to get it in tip-top condition.

• Newest Features

Cars are now similar to consumer tech products like smartphones. In some models, you can expect features like self-driving, integrated CarPlay or Android Auto, improved stereo system, and more. Even something as simple as memory recall for seat positions can offer great quality of life improvements. In fact, some newer cars are expected to arrive with the ability to change colour. You’re making a major purchase that might last you for years on end. You needs feature that are not only great now, but will be just as great five to ten years down the line. For this reason, a new car might be a great way of future proofing and ensuring you enjoy the vehicle for the longest amount of time possible.

• Ability to Customise the Car

Another similarity between consumer tech and cars is the chance to customize it when you’re making the purchase. Whether you’re looking to include a particular stereo system, add a sunroof, change the colour of the interior, or change the colour of the rims, you can request the exact specifications you want when buying new. In the case of shopping for an old model, it would be quite hard to find something that is exactly like the car you want. You might end up spending more money customizing a used car than you would have if you were buying new.

Advantages of an Old Car

• Cost Saving

Cars are a product that lose value as soon as they’re driven off the lot. This means that you can get a slightly used models for thousands of dollars cheaper than a brand new one. If you’re savvy enough to recognize the faults in a car, you can find a model that is much cheaper and virtually as good as new. Moreover, the car has already been through the depreciation phase, so you wouldn’t lose too much money when you try to resell it. In some cases, you can resell a used car after a couple of years of usage for the same price that you bought it at. Just make sure you do a thorough inspection of the car before making a down payment.

• Warranty Options

Even used cars come with warranty options that cover the cost of repairs on the most expensive components. In most cases, these warranties are based on distance and not time. If your warranty is valid for 200,000km, and you don’t drive too much, this could be a safety net that lasts years for you. There is also the option to buy certified pre-owned cars, which extend the manufacturer’s warranty, but these tend to be a bit more expensive.

• Cheaper Insurance

Most places legally require you to have car insurance, and this does protect you from financial damage during an accident, so having insurance is unavoidable. The plus side of being a used car is that you will usually end up paying a much lower premium for the model. Insurance rates are known to be lower on used vehicles and continue to decline as a vehicle ages. While you’re finalizing your purchase, you should always factor the insurance rates into the total cost.