There are definite benefits to buying a brand new car; you’ll come away with a lot of new gadgets that make driving more fun and safer too, and you’ll have the prestige of driving around in a car no one else has ever driven before. However, there are far more benefits to buying a second-hand car, and these mean that buying a new car should never need to be a consideration.
You’ll Pay More For A New Car
If you want to save money but still buy a great car, second hand is the option that will suit you best. That’s true whether you are paying for the car outright or you’re looking for a payment plan wherein you pay monthly. Either way, the less you pay, the better for your all round living expenses. You don’t want to put yourself under any unnecessary financial pressure just to get a car that has a brand new tag on it.
It’s far easier to obtain credit for a second-hand car because they cost a lot less. You’ll need to borrow less to get one. Before you opt for any kind of credit, make sure you research the loan company. You just need to search online for Carvana reviews, for example, and you’ll find out what you need to know.
It’s not just the cost of the car initially that you need to think about either. Newer cars tend to have higher insurance premiums and, if your state has personal property taxes, a newer car will cost more in tax as well.
A New Car Depreciates Faster
Almost all cars depreciate; the only ones that don’t are some classic cars, or cars that were owned by certain celebrities. For the most part, however, as soon as you buy a car and drive it home, it will be worth less than you just paid for it. The average new car depreciates by around 19 percent in just the first year of ownership. If you took out a loan to buy the car, you might find that by the end of the term you have paid much more than the car was ever worth.
This is a problem when you want to trade the car in as well. If your car is worth less than the amount owing on it, that difference will be added to the finance for your next car, making it a truly expensive venture.
This won’t happen with a second-hand car. It’s true that the car will still depreciate but not by as much so you should be able to trade it in without losing a lot of money in the process.
A New Car Gives You Less For More
When you buy a used car, you’ll often get a lot more for your money. Since a new car loses so much of its value, you can buy a second-hand car that is just a year old with all the top of the line equipment in it for a fraction of the price that someone paid for it when it came off the assembly line. Searching for this kind of bargain means that you are buying the closest thing you can to a brand new car but without the huge price tag on top.
CRD Auto Industry Insider may contain helpful and on-topic partner content that auto enthusiasts and car shoppers find valuable.