Investing in a car is not so much of a hassle any more, now that there are several options for financing the purchase of your new car. However, once you have decided to buy a car, just stop for a moment and think. Do you think you would be better off with a brand new car or one that isn’t so new? Well, for this age-old question, let’s take a look at the important aspects you should keep in mind while making the all-important decision.
A new car is any day a good choice, irrespective of the brand it belongs to. Also, don’t overlook the resale value of your new car (this again differs from brand to brand) when you are about to make your purchase.
As far as a pre-owned car is concerned, ensure you buy it from a certified used car dealer, and the costs will tend to vary depending on the resale value of a particular brand.
This perhaps the deciding factor for everybody, naturally a car straight from the manufacturer is going to cost a tad more than an old car. The best part of this being, you can get easy car loans if you are looking to buy a new car.
If you are only a beginner when it comes to driving on the city roads, you might as well start off with an old car, become familiar with the technical know-how of the car as well as driving it.
For a new car, the warranty comes along with the purchase; there is no need to pay anything extra. For a pre-owned car, there is usually no warranty- unless you want to buy it separately.
- Depreciation Check
The value of a car once purchased is only going to depreciate. The older the car, the more is the value of depreciation.
The in-built accessories are up to date in a new car. On the brighter side, for an old car- you can always customize all the gadgets and accessories and give your car a more personalized feel.
- Fuel Efficiency
The efficiency obviously depends on the engine used, the newer the car better will be its efficiency.
The insurance premium cost directly depends on the age of car. Here, older cars have lower insurance rates.
Although there are cars being released for all income levels, the final expenditure is at least a few thousand more than the estimated cost. So, if you have good budget, but want all the good stuff such as a great stereo and navigation system you might as well go in for a pre-owned car. You are sure to find a lot of variety not only in terms of accessories, but also in terms of brands and rare edition cars.
Just because your car loan was granted, your monetary woes aren’t going to end right there. There will be a recurring expense in the name of maintenance, the older the car; more will be the time, efforts and money spent on maintaining it.
- Time to Choose
Doing a little bit of research before your purchase is definitely worth it. The more you search, the more questions will arise. Always remember, never exceed your repaying capacity. The point is to stick to your budget and buy a car worthy of it.