So that faithful old car you’ve been driving forever has finally bit the dust, and it is time for a new vehicle. There are many makes and models out there to choose from, but one question that you should ask yourself is whether or not you should spring for a brand new car, or find a decent used one?
The Benefits of Buying New
The history of the vehicle is one of the biggest factors in deciding to buy a new or used car. Of course, a used car would be a smaller initial investment, but how long will it last before you end up spending additional money for repairs? There are also many benefits to buying a new car, including repair warranties, and even better gas efficiency.
When you buy a new car, the price depreciates as much as 20% as soon as it leaves the lot, and the more you drive, the more likely it will depreciate faster than you can pay it off. Used cars, on the other hand, have a more stable rate of depreciation, and you will most likely own the car before it loses all value.
Good Options for Used
If you do decide to go with a used car, be sure that you do some research on the history of that vehicle. In addition a standard check of the mileage and the cars age, if there is paperwork with the vehicle look to see what parts have been replaced, and how frequently they needed to be fixed. You should also check to see if the paint is original, or if it was done recently, as it could be covering up rest or other body damage.
One place to look for quality used vehicles are car services or even police auctions, as generally these cars have been taken care of and are being sold because there are new replacements, not because there was anything particularly wrong with them.
The Leasing Option
Leasing a car is also an option, but generally only makes sense if you drive less and are interested in always having a new model. But while there are generally lower monthly payments for leasing than buying a new car, you have to take into account the potential resale value of a car you will eventually own, as opposed to a leased vehicle that will eventually be returned to the leasing company.