If you are on a tight budget and you’re looking forward to owning your first car, you can find it a bit overwhelming to choose between a used or new car. When you opt for a used car, you’ll be spending some bucks on functional fluids from and regular maintenance, which is costly.
Why you should buy a New Car
A new car is the best option if you drive your second car and don’t want to go through the huddles of maintaining a used car. Here are more reasons you should buy a new car:
- Financial incentives; a new car comes with many financial offers like free engine oil, regular services, and a reliable warranty from the manufactures or car dealer. Financial incentives on a new car can lower its upfront cost making the car affordable.
- You can tailor your vehicle; when buying a new car, you can tailor it based on your preferences like interior and exterior design, color, and other tech features before you place your order.
- Comprehensive warranty; a new car comes with a reliable and comprehensive warranty on roadside repairs. A certified pre-owned car with low mileage also comes with an extended factory warranty, which gives you some peace of mind.
- Low maintenance cost; a new car comes with a warranty covering most of the repairs and maintenance. That means you will be paying less for most recurring repairs.
Benefits of Buying Used Cars
New cars may seem a better option if you want to custom your vehicle. However, if you are looking forward to saving some money, a used car is an option to consider. Here are some reasons to opt for used cars:
- Slow depreciation: A new car can lose up to 20% of its value within the first year of ownership. That means if you’re planning to buy a new car and sell it the following year, you should be ready to lose a significant part of your investment. The depreciation rate is between 9-12% for used cars, depending on the model you buy.
- Low cost; everyone that goes for a used car is saving some money. You can find vehicles that are 1-2 years used and almost brandy from used car dealers. It is also cheaper to get insurance for a used or cheaper car, saving you some money on monthly premiums.
Buying a new or used car is a decision you make based on your budget. If you want to save some money, you should go for used cars at least 2 years old.
Alternatively, if you can afford a down payment and qualify for a car loan, you can opt for a new car. Since buying a used car saves you on insurance and you get to drive your favorite model at a 20%% lower price, it is the best option for those on a tight budget.