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 PEAK Auto and regular maintenance, which is costly.
Choosing whether to buy a used or new car is not that easy, and that is why we’ve come up with this short guide on buying cars. Keep reading before you make that move to buy your dream car.
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.