All opinions are mine and mine alone.
Photo by Riccardo Bresciani from Pexels
Buying a new vehicle is a difficult decision that requires you to weigh multiple pros and cons. One of the considerations you should make early on in your search is whether buying a new or used vehicle is the best choice for you. Here are five questions to ask yourself when making this decision.
How much can I afford?
The most obvious determinant of whether a new or used vehicle is the best choice for you comes down to your budget. It is best to think about how much you can afford to spend on a car and how much you want to spend. Cars significantly depreciate the moment you leave the dealership – they’re never an investment.
How much you’re willing to spend will also vary depending on whether you’re planning to finance a new car or buy it outright. Paying with cash is always the best option, as it will save you hundreds or even thousands in interest. However, this isn’t an option for everyone.
Privately purchasing a used car will also limit your financing options, as you will typically have to pay for the car in cash. However, there are used car finance options through third-party companies if you’d like to make monthly payments on a privately sold vehicle.
What make and model do I want?
It comes as no surprise that an Audi will cost you more than a Honda. However, this doesn’t automatically mean you should buy your Audi used and your Honda new. Some vehicles will depreciate faster than others. A used Honda can generally be sold for close to the price you purchased it, making it an excellent choice for people who don’t want to lose much money on a car.
If you’re set on a luxury vehicle like an Audi or a Lexus, purchasing them used – even just a few years old – will save you lots on the list price. Pick your favorite models and put in the research before going ahead with a big purchase.
How long will I be driving this car?
How long you plan to drive your new vehicle may also determine whether new or used is the way to go. If you’re looking for the perfect family vehicle you can drive for years to come, buying a newer SUV or van might be the better choice.
However, if you think your lifestyle might change within the next few years, it may be better to buy a used car that suits your lifestyle now. This way, you’ll have some cash saved for that upgrade in the near future.
How often will I be driving?
Will your new car generally just be taking you to and from your ten-minute commute between home and work? Or will you be going on lots of lengthy road trips that wrack up your mileage?
A used vehicle that already has many miles on it will be okay for the city dweller, but something with low mileage will be best for the road-tripper. It’s also helpful to have dealership coverage for repairs and maintenance on a new car if you’re traveling considerable distances. Getting stuck on the side of the road in the middle of nowhere with no coverage isn’t fun.
Where can I find a used car?
Are there reputable used car dealerships in your city? A private car sale is always an option, but you have fewer assurances that the vehicle hasn’t had extensive hail damage or was stolen. Protect your purchase by working with reputable dealerships only.
Speak Your Mind