Which is which? Buying a new car or buying a used car?
Do you want to buy a car but can not decide whether to purchase a new one or a used one? Here in TopSpeed.com we will help you make up your mind by giving you sensible comparisons about what kind of car you should obtain.
The most important thing to consider when in doubt about buying a new or a used car is your finances. Money can help you choose. If you currently do not have the money to purchase a new one then opt for a second hand car. However, used cars entail risks. Nevertheless, it all depends on your choice. Detailed below are the comparisons when you buy a new or a used car.
The rewards of buying a new car:
Buying a new car does not have the risk as compared to buying a second hand car. If you have a new car, you will have a peace of mind that it will not go wrong once you drive it in the road. In addition the feeling of satisfaction and delight as the car’s original owner can not be set aside.
A new car does not need a heavy maintenance even if you have driven it more than a thousand miles. Only a minimal tune-up and oil change are necessary. Plus the fact that most car manufacturers hold these scheduled tune-ups for free in a given period. All throughout the first years of your new car, you do not have to change its battery, brakes, tires, and other specifications it has. The other advantage of having a new car is its warranty. Most auto manufacturers now a day give 3 or more years warranty to new cars so that if something breaks up along the way you will be safe assured. Moreover, car makers also offer powertrain and corrosion warranties to their buyers. Many Asian auto manufacturers, such as Kia, Suzuki, Hyundai, and Mitsubishi, provide the longest powertrain and corrosion warranties which can last up to 10 years or equivalent of 100,000 miles. Furthermore, a new car comes with a free roadside assistance given by the manufacturer usually for 2 or more years.
If you have a new car, you are qualified to the Lemon Law. If you found out that you have a lemon car, then you are entitled to a full refund or a car replacement by the manufacturer. This law is tendered in all 50 US states.
Buying a new car also entails a lot of great selections. You can have a fully equipped new car with the latest gadgets. You can also have a great variety of entertainment and communication system such as the car’s audio & movie and the newest GPRS. Most used cars do not have the latest and practical automotive features. Annually, auto makers install the latest technologies (such as security and safety systems) in there cars. Typically, most used cars do not have airbags and/or anti-lock breaking system (ABS) that works just like a new car has. They may even cause some minor injuries to the driver and passengers when an accident comes.
Aside from its attractiveness, new cars also have a great resale value as compared to a used one. If one day you decide to trade in or sell your car, you will make a profit out of it. Take for example the case of Mercedes-Benz CLK-Class. This car model is famous for its high price resale value because it annually depreciates at a lesser rate.
New cars also tend to have a minimal amount of interest rates. Even though you will pay less in buying a second hand car, you will be burdened by the sum of its interest rates. New cars are less expensive when manufacturers are clearing their old inventories. Usually, this happens around October. During this period, auto makers give rebates and discounts for their cars.
The rewards of buying a used car:
Price! Price! Price! Price has been the number one reason why buyers opt for a used car. The price difference between a new and a used car is steadily widening. According to CNW Marketing Research’s 2005 report, the standard price for a new car is approximately US $26,700. On the other hand, the standard price for a used car is estimated to be US $9,800. These figures mean a lot.
The other advantage when buying a used car is all about the new car’s depreciation. Generally, a new car will depreciate 10 to 20 percent from the moment you drive it in the road. In effect, your ownership value will also drop. In contrast, a used car will not experience depreciation that much.
In addition, buying a used car entails a certification program. The increase in certified pre-owned (CPO) cars around the United States has resulted to a better alternative in buying a used car. When purchasing a certified pre-owned car, you are assured that it is of high quality. Many car manufacturers have a stiff and meticulous requirement before they can sign up the car as a CPO. They only allow cars who have a low-mileage with no reports of accidents. CPO cars have undergone a strict inspection of their engines to ensure quality and standard. They also have a warranty. Some car manufacturers even offer warranty that includes roadside assistance for a given period of time. Also, auto makers give CPO cars a special financing. However, a certified pre-owned car will cost more as compared to an ordinary used car.
If you don’t go for a CPO car, you can always have a slightly used vehicle for a cheaper price. These used cars are in good condition with their odometer only having a few thousand miles. These types of cars are usually used as a test drive or demo cars by auto dealers. They look like a brand new car except that it was used in seldom occasions. Usually, these cars have not reached more than 5,000 mileages.
So there it goes. The final decision is yours.