Before we get into the merits of buying either a used or new car it is appropriate to let you know that owning an automobile should not be looked at as an investment. Your desire to own your own car should be approached based on what you need one for. An automobile is just as valuable based on what it can do for you.
Will it allow you to get a better job? Since you might be able to drive into areas where public transportation is spotty or non-existent. Is it true that owning your own car will enable your on-time arrival at your job? These are just some of the questions you need answered, before we get to the economic argument if you’re better-off with a new or used car.
First of all, take you emotions out of the buying decision, or you might find yourself spending more than you want to. I sold cars (both new and used) for many years, and there are advantages and disadvantages to owning a new or used car.
As a good car salesmen, my job was to lead the customer into making a buying decision that was favorable to my employer. If you fail to do your homework as to your need for either a new or used car before approaching your local automobile dealership, your buying decision will be compromised in more ways than one.
I will not bore you with some of the tactics used by car dealers to make you spend more than you want to, neither would I be revealing some of the tricks used by sales people to get you to make a decision now. Perhaps another article will address how one can get a good deal when bargaining with an automobile salesmen.
I can also assure you that knowing what you want when searching for the right transportation vehicle is key to making a smart buying decision. Contrary to what some might believe, that shiny new car comes with advantages and disadvantages, and some of them might surprise you.
The Benefits of Buying a New Car
From my years of selling automobile of different kinds and makes, it is better to buy a new car if you intend to seek financing of the purchase price or part of it.
All new cars will come with solid warranty to protect most of the major parts. Nowadays, it is even possible to find new car deals with warranties that cover routine maintenance.
The allure of the new car smell is hard to describe with words, you have to experience it to know what I mean. The inside of your new car will be clean and free of “physical and Psychic essentials”, which are present in abundance in your average used car.
Most of the time, the interest rate on your new car purchase will be lower than that offered on a used car. From a banker’s point of view, your new car will provide you trouble-free riding experience for several years, which means less excuses not to make the auto-loan payment.
If you plan to keep the car for additional years past the warranty and financing period, it would be wise on your part to buy an extended warranty. The price to add additional years to your warranty terms if far cheaper than what you can get on any used car.
It far easier to determine the cost of the new car in this digital age. With the right research and a few clicks of your mouse, you can find out what the dealership paid for the new car including all the manufacturer’s incentives.
Buying a New Car Disadvantages
Despite the numerous best new car deals on can find online, your new car purchase comes with some risks.
The depreciation on a new car can be shocking to say the least. It is not uncommon to lose at least 25 to 35 percent of the value of the car within the first year of ownership. In fact, I remember a customer that drove the car for one week and wanted to sell it back to the dealership, he lost twenty-five percent of the value for just that one week.
Your shiny new car will attract more attention from the criminal elements within your neighborhood. If you park it on the public street be prepared to deal with minor scratches, dents, and other issues that might take the joy out of owning your automobile.
The Benefits of Owning a Used Car
During my years of selling both new and used cars I soon learned that all used cars have individual identities, which is why it is difficult to comparison shop even the most popular used cars. The decision to buy a used car will most likely be determined by your finances, but there are some advantages and disadvantages to the decision process one must keep in mind.
Used Car Benefits
You do not have to take a huge loss on the depreciation as compared to owning a new car. The prior owner most likely took the huge loss, which might be to your benefit. On the average, used cars will cost your less than a new one.
Despite some of the complaints about the high prices of used cars, buying one is still the best way to drive a car you cannot afford new. If you know what you’re doing you can get a used car with more amenities as compared to settling for a less loaded new car.
It is far easier to find a used car you can buy for all cash as compared to finding a new car one can buy all cash.
The Disadvantages of Used Cars
Used cars are unique in their own right and that is why it is very difficult to comparison shop. You might find one that is similar but never the same.
A car is a mechanical equipment and it is obvious that some of the major parts will breakdown based on usages stats. The engine, transmission and other major parts come with shelf life, and it might become your responsibility to keep replacing the parts if you want your used car on the road.
The financing terms on a used car is less generous than that you can get on a new car.
Most used cars will come with less or no warranties. If you know less about car repairs, it is better to buy a new car than to take a chance on finding a used car that was not abused by its prior owner/owners.
You should not be asking why new or used cars are so expensive. You need to first determine why you need your own ride in the first place. Do not buy one just because it is the right thing to do. You need to do your own analysis about the cost/benefit ratio, before making the financial commitment.
If your aim is to use your car to improve your social status among your peer group, you might end up being disappointed. Neither should you be making a financial commitment to buy a new or used car just because you believe the opposite sex would find you more attractive.
If your goal is to attract a more desirable partner, you might get a better value for your money by investing in yourself. Lose a few pounds if you’re out of shape, invest in a better wardrobe (change your clothing style), fix your teeth, learn how to be more confident, learn better social etiquette, etc.; these are just some of the more productive ways to invest in yourself.
Buying a used or new car should not be approached as an investment. If you look at it as an investment it would be a money losing one. A car has needs just like we humans, and unless you’re prepared to fulfill those needs your ride might not serve you as faithfully as you expect.