Deciding between a new and a used car is not new. It’s one of the oldest questions that millions of car buyers around the world have faced at some point. To make your decision a little easier, here’s a short discussion about two of the biggest factors you should consider.
Before you decide between a used and a brand new vehicle, make a comparison of the best auto loan rates. It’s one of the first things you have to find out in making a decision.
Brand New vs. Used Car
Depreciation – Every vehicle depreciates over time, but brand new cars depreciate the most and the fastest. Once you drive home your brand new car, it will lose about 20 percent of its current market value just like that. Within three years, it will have lost almost half its original value. If depreciation is your biggest concern, a secondhand car is better for you. If you’re the type who doesn’t truly care about depreciation because you plan to drive that car to the ground, then there’s no reason you shouldn’t buy a brand new vehicle.
Reliability – There’s no question: a brand new Honda Civic easily beats a used Honda Civic in terms of reliability. The numbers on a brand new car’s odometer show only what it has traveled from the factory to the carrier truck to the showroom and perhaps around the dealership. Almost absent wear and tear means the car has a lot of life left in it. The warranty is solid and the insurance will cover most of the things you need to repair or replace in case something breaks. As for a used car, sometimes it’s not a bad idea either.
A Civic, Accord or a Toyota Corolla will likely run forever, but you’ll have to contend with more repairs because of the age of the car. You can buy the brand new one and worry about nothing, but if you’re good at taking care of old cars and can do most of the repairs yourself, a used one (not an abused one) is also an option.