Invest In New Cars Or Used Cars?

Many people prefer new cars because they are shiny and very attractive without any flaws. New cars also smell nice considering that it has never been used by anyone else before, while featuring the latest in technology. New cars do cost more than used cars, yet this does not affect the purchasing power of many because of the benefits they offer. As such, many frown on the idea of investing in used cars because new cars are capable of running for the first few years without any mechanical repairs. Nevertheless, used cars also have their advantages which others also consider.

What New Cars Have To Offer

Options – New cars offer an array of options especially since there are newer models that can be customized. You have the liberty to choose the color and fabric you desire in a new car, as well the engine size and transmission. As such, your options are plentiful allowing you to invest in a car that offers the features you need today.

Savings – If you are looking for the best deal, then you must opt for new cars instead. New cars are usually sold at a zero percent down and with low interest rates. When you purchase used cars, the interest rate offered is higher compared to what is offered in new cars. You might even come across a car maker that offers deep discount rebates because of the competition with other makers.
Warranties And Repairs – The best thing about new cars is the warranties they carry. Thus, if something goes wrong, the dealer will cover the expenses. Every warranty will be different, but they often include car maintenance on a regular basis, car replacements or rentals and even road side assistance. Considering the fact that the car is new, you will not have to worry abut repairs too soon. And if your car will need any repairs, I will most likely be covered by the warranty.

What Used Cars Have To Offer

Cost – If you are on a budget and unable to invest in a new car, you can consider purchasing a used car instead. If you take the time to shop around and carefully inspect the cars, you can find a reliable used car for as low as $500. Many used car salesmen also entertains negotiations, so if you know how to negotiate, you may get a used car at a lower cost.
No Monthly Notes – Since used car buyers often pay cash when purchasing, there will be no need to have a monthly not attached. However, you can also purchase used cars through your bank as many dealers offer financing. It is still better to check if your bank has a certain requirement for the age of the used car and every financer will also have their specifications.
Affordable Insurance And Rates – When you own a used car, the insurance rates are considerably affordable. This is because the insurance rates decreases while the age of the car increases. This also means that the cost of replacement and repair will be cheaper as time goes on. Registration rates are also lesser if the car is older thus, allowing owners of used cars to save up on costs.

  • Photographed by Daniel T. Yara

Valerie Allaine is a freelance writer specializing in car maintenance. She regularly contributes articles to Ojai car repair and other car maintenance websites.