The debate on whether to buy a new or used car continues. Used cars are less costly. Also, the fact that a new car depreciates immediately you begin to drive it makes many potential new car buyers feel ‘cheated’. There is also the argument that cars depreciate faster in their first two years of ownership, up to 30% off its sticker price. Others say that today’s cars are built to be more robust than before, so the risk of buying a used car is much less.
The high cost of new cars is the biggest limiting factor in buying new cars. However, you can find new car loans at competitive rates and take advantage of all the benefits of having a new car.
Why a used car may not be the best
A used car may come cheap, but no one tells you about the psychological torture that you have to go through for owning one. Of course, it will depend on how old it is. Even if some used cars come with a limited warranty, there is no guarantee that there are no major ‘hidden’ issues that could emerge way after the warranty period expires.
Moreover, you do not know the mechanical and accident history of the used car. You can buy a used car for as little as $1500, but the money you will use on repair and maintenance for the first couple of years can greatly damage your financial plans.
Speaking of mental damage, you only have to hope that your used car will start each morning before you go to work. The worries are only made worse by how old the car is. Even if the car starts, you do not have the assurance that it will not die on you halfway toward your destination.
When to get a new vs a used car
For some people, used cars will do. For some, a new car is the ideal choice. If you have settled down a bit and drive less, a used car would make much more sense. If, for example, you drive way too much, over 25,000 miles a year, you should get a new car. Moreover, if you are okay with driving the same car for up to eight years or more, a new car is for you. Why? To drive the threshold of 60,000 miles with a used car, you need to carry on expensive routine maintenance. A used car can reach irreversibly damaged levels if you hit 100,000 miles. You may not have a car within the next few years.
A new car warranty is one of the best deals you can get, because it covers any issue within the first years of ownership.
With a new car, you get to enjoy its best years without surprise expenses. Sure, you do not have to go for a luxurious car if you cannot afford it. A basic one will do. Anyway, a car is just a mode of transportation!