With the wide choice available, you could be forgiven for thinking that buying a car would be very easy. However, not only do you need to decide on the make and model but also more importantly, whether you want to buy a new car or a used one.
Good Reasons Why You Should Consider Buying a New Car
The principal reason why you should consider purchasing a new car is that you will not have any reliability problems in the first few years. Any small issues that may come up will be dealt with by the manufacturer’s warranty. Buying a new car also gives you access to the latest technology; this will usually translate to better performance, safety, reduced emissions, increased mileage, better infotainment systems, and the latest-gen interior and connectivity features. It may also be possible for you to take advantage of finance at a lower interest rate if the manufacturer is doing a promo.
Why Buying a New Car May Be a Bad Idea?
Buying a new car is a surefire way of losing money because your car reduces in value the minute you take delivery. In the initial two to three years, you will end up losing a substantial chunk of the value of the car, which essentially means that you have thrown away a few thousand dollars with nothing much to show for it. If you are buying a model that is absolutely new, adequate customer reviews will not be available. Due to the higher value of new cars, your insurance premium will also be higher.
Used Car Advantages
The biggest benefit of buying used cars Brooklyn is that you pay a far lower price as the original customer has borne the brunt of the depreciation. After the initial three years, the value does not reduce so fast, so even after using the car for two to three years, you will normally be able to get a good resale value. It is also easier to use your savings to pay for a used car and even if you do want finance, the interest outgo will be less as the finance amount is also low. You are also likely to benefit substantially from the lower insurance premium.
Disadvantages of a Pre-Owned Car
Your main worry about a used car is that it may not be as reliable as you want it to be. However, unless the car has a really high mileage, you are unlikely to face too much of a problem with the average three-year-old models as modern cars are manufactured to be more reliable. Of course, your choice of a car may be restricted in terms of specific models and colors, but you can pick up a really good bargain if you look around.
There are no absolute answers to whether you should or should not buy a new car. It really depends on your preference and affordability. Make sure you buy a model that has a good reputation for performance and reliability and that you can pay off the loan in about three years.