When it comes to buying another vehicle, a lot of people have trouble deciding if they should buy new or used. Both sides have pros and cons you should consider if you want to make the best possible choice for your short and long-term needs. Jumping in too soon without looking at both sides can cause you to take a path that is not right for you, and you can’t afford to make that mistake. On the other hand, reviewing the benefits and downsides of each path puts you in a much better position to choose with confidence.
The upfront cost is the first thing that will grab your attention when buying a vehicle. A new car or truck can cost between $20,000 and $30,000, requiring most people to take out a loan. On the other hand, you could buy a car that is three years old for about half the price it would have cost when it was new.
If getting a new vehicle is not within your budget, then getting a used one is your only option. If you have the budget for a new vehicle, take the other factors listed in this guide into consideration before you do anything else.
Warranties and Repair Costs
One of the benefits of buying new is that many vehicle manufacturers offer service plans and warranties. If you buy a new car and something goes wrong within the first year or so, the dealer will often fix it without charging you. It’s important, though, that you check the terms before buying so that you know what plan you are getting and what it includes. Even if you don’t get a service plan, new vehicles are much less likely to face trouble if you care for them.
Depreciation is one of the top things you should consider when buying a vehicle. Most new cars and trucks lose about 10 percent of their value within the first month. If you own a new vehicle for two or three years, you will lose about 50 percent of its value. On the other side of the coin, a used vehicle won’t lose too much value as long as you treat it well. Buying used is the best option if you want to sell the vehicle in the future without losing too much money.
Choosing between a new and used vehicle is no small task, and you must consider several factors if you want to discover what path is right for you. If you want a vehicle with the best possible reliability, buying new is the choice you should take. Buying a used car or truck is the right option if you don’t want to lose a lot of money to depreciation over the next few years.
Keep your goals and needs at the front of your mind while comparing your options so that you can see which one is the best fit for your life. As long as you keep your eye on the prize and give it careful consideration, you won’t have trouble doing the right thing.