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If you’re looking for a new car, then you want to make sure that you’re getting the best value for your money. While you will undoubtedly be getting a much fresher machine, it’s hard to say if it ever makes more financial sense to buy an entirely new car. Here, we’re going to look at some of the factors that can affect the cost-effectiveness of buying new vs. buying used, as well as some of the ways that you can get the best value out of buying a car that has some history behind it.
You will pay more for new, no matter what
It might seem obvious, but it needs to be outlined in bold: new cars cost a lot more than used cars. The price increase can often be so drastic that even if you have the budget to drive away from a dealership with a used car today, you would have to wait longer and save more to be able to do the same with a new car. What’s more, people are more likely to take on debt to buy a new car, which not only means that you’re paying more, but you’re paying interest, increasing the overall cost of buying a new car even further. Very seldomly do advances in things like fuel efficiency make up for the money lost.
Used doesn’t have to mean risky
Of course, when weighing up the pros and cons of buying a used car, some people might argue that with a new car, you know what kind of shape you’re getting it in. You’re much less likely to discover some hidden defects weeks or months down the line. However, as outlined at https://www.caranddriver.com/, there are more and more certified pre-owned cars that are coming out on the market as well as plain old used cars. These are cars that have to meet certain criteria when it comes to their condition and performance, normally outlined by the manufacturers of the car themselves, to make sure that they’re perfectly suitable for the road.
Depreciation rears its ugly head
Every car depreciates in value over time. A combination of age, wear, and tear affecting the parts of the vehicle as well as the continuous improvement of technologies aging out the car means that very, very seldomly does a car retain or improve its value over time. We will look at some exceptions in a moment, but it’s important to know that this depreciation affects new cars much more than it does with used cars. As soon as a new car comes off the lot, its value is going to drop significantly because it makes the jump from “new” to “used.” As such, if you’re looking at your vehicle as an asset, then you’re going to lose more value buying a new car than a used one in most cases.
Investing in an old car can return more
Aside from the financial downsides of buying a new car, there’s also the idea of the vehicle as a financial asset. We’ve already looked at how new cars tend to depreciate much more quickly, especially after you first buy them, but what about their ability to retain or even gain value? If you’re able to get a popular classic car, then working with car restoration services such as https://autorestorationnearme.com/ can help you get them back into great shape which may end up actually increasing their value significantly. Of course, this will depend on things such as how popular the car is amongst collectors as well as much money has to be spent whipping it into shape.
The other costs of driving can increase, as well
A driver has to be aware of the total costs of owning a car, not just the price of the car itself. Now, it is true that newer cars are often (not always) more fuel efficient, meaning you’re going to spend less to fill the vehicle up with gas. However, you are likely to pay higher taxes as well as licensing fees on newer cars. Second-hand cars are also much less expensive to insure than older ones, unless they’re particularly risky cars because the value that you have to insure is going to be much lower, since they’re not worth as much.
Of course, beyond the points above, it’s all going to come down to personal preference. If you simply feel better behind the wheel of a new car, then that might be a feeling worth investing in.
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