Should You Buy A New or Used Car?

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If you are thinking of buying a car, you first have to decide whether to buy a car that is new or used. There are many factors to consider and both have their pros and cons; understanding the difference between a new and used car will allow you to make an informed decision which cater to your driving needs.

First off, why should you buy a used car? For starters, they are significantly less expensive than a new one. This is almost always the reason why people purchase a previously owned car. If you buy a car that is a couple years old, you will literally save thousands of dollars but it will still be in excellent condition. To put it simply, you can get more bang for your buck by purchasing a used car.

However, one of the major downsides of used cars is that you may not know who owned it, if it was properly maintained, or if it was involved in any accidents. There are horror stories of buying used cars — or “lemons” –and driving them home, only to find out it was not what you expected. Luckily, most dealers or individuals can run reports on the history of a car by checking out the VIN (vehicle identification number) to see previous owners, collision repair work from accidents, and other pertinent information. You will always run into these types of risks when purchasing a used car.

If you buy a new car, the circumstances are almost entirely different. You drive off the lot knowing you are the first owner and that the vehicle is still under its manufacturer’s warranty, so your car is entirely reliable. It most likely has the latest safety features, accessories and excellent gas mileage. In fact, there may be nothing wrong with the car at all!

So, what is the downside of buying a new car? The excruciatingly high price tag. Your car will depreciate in value by 30% the minute you drive it off the lot. This essentially makes it a used car after owning it for less than 24 hours! This is fine if you plan on driving it for many years, but if you plan on selling or trading your car after a few years, a new car may not be a wise financial investment.

Ultimately, the new versus used question comes down to personal preference and finances. However, no matter which you choose make sure you buy a car that is right for you. If you buy a used car make sure you know the history of the vehicle, and if you invest in a new car make sure it is a vehicle you will love and drive for years to come.

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