What differentiates a used and a new car is the cost that one accrues in purchasing each. A new car will cost relatively high compared to a used car which might be half the price of the new car that is the same model.
Today, most dealers are making sure that they sell used vehicles that are in good condition, such that you get the same value as buying a new car. A good dealer will make sure a used car meets all the safety standards before selling. For instance, a Certified pre-owned (CPO) vehicle has gone through multipoint inspection, has an extended warranty and comes along with other incentives such as background check report with no extra charge, road assistance programs and many more.
So, why then buy a new car when you can get a used car that is as good as new?
A new car will have pros and cons and so will the used car. The following is a discussion that will help you make the right choice.
Pros of a new car
- A new car won’t necessitate you to budget for repairs in the first years.
- Dealers offer to finance at a lower interest rate.
- The Cars come with the latest technology in the market, such as lower gas consumption and lower emissions.
Cons of a new car
- They depreciate pretty first in the first two or three years meaning that you lose money that you are not able to recover. As soon as you drive it off the value can depreciate by up to 11% meaning that a $20,000 vehicle is worth only $17,800 once it leaves the dealer shop.
- Annual registration fee is quite high in the first few years after a car is manufactured.
- Purchasing a brand-new model might come along with problems especially if the manufacturers had a mishap in that year.
- Dealers add sales tax on top of the price tag. On top of it, you might be required to incur shipping charges, destination fees, dealer preparation fees with even some having hidden advertising fees.
Pros of a used car
- Someone already suffered the depreciation costs which means that you don’t lose a lot of money. It will still depreciate but not as quick as a new car. You can sell the car at the same price that you bought it after some years.
- They have no sales tax plus you do not incur any extra fees or hidden fees. Buy a used Mercedes Hindhead where you are assured of no additional costs.
- Insurance rates are low with low annual registration fees
- There are lower customization costs unlike buying a new car.
Cons of a used car
- Most likely, you will have to incur repair costs.
- You do not have the freedom to look for a vehicle that has the specifications that you want as the main concern is history and mileage of the car.
Owning a new car is prestigious, but the question is, is it worth it? From the above, it is clear that benefits of buying a used car far much outweigh that of a new car. The decision is for you make, but whichever it is, be guided by your financial capabilities. Contact Sandown Group to attain the best deal for new or used cars.