Questions to Ask When Deciding to Buy New vs Used
When it comes time to decide between a new or used car, everyone has to zero in on their own reasons for the choice they are making. For starters, those who are looking to buy a used car will need to realize that the process can be more costly over the long haul. While you may save some money in the short term, used cars are not a magic wand that can be waved to avoid all financial difficulties.
This is the sort of question that does not come with a 'one size fits all' answer. The questions that we are willing to ask ourselves are not always advantageous, though. Sure, you need to know how much you can spend each other and you also need to choose a car with the right aesthetic appeal.
These are not the questions that are associated with smart purchasing decisions, though. Don't base the decision on the amount that you can afford. This will cause you to purchase more vehicle than you actually need. Once you're ready to choose between new and used, there are truly important questions that have to be asked.
Thanks to this handy guide, you can ask yourself the four most crucial questions and become a much smarter consumer in the process. Let's take a closer look at your decision and the best ways to navigate it:
1. Can You Cope With The Realities of a Used Car?
Used cars are going to cost far more over the long haul and they need a lot of work to remain operational. Are you prepared for the financial realities that come with that commitment? You may save some more over the short term by purchasing a used vehicle but this money is definitely going to be spent over the long haul. If you do not have the financial wherewithal to handle that, tread lightly.
There are also those who can afford the repairs financially but are unable to spend long periods of time without their car. Does this apply to you? If so, you may want to choose something that is going to be a bit more reliable. Dealing with the downtime that comes with a used vehicle is not always palatable.
2. What's Your Repair and Maintenance Budget?
There are some car dealers who will offer you access to their repair and maintenance expertise after the purchase has been made. Those who do not have a sizable amount of extra cash on hand to handle repairs and maintenance must make sure that they are taking
these types of offers into account. In many instances, the aforementioned deals are only offered to new car owners, though.
If you're still in the market for a used car, be sure to have it inspected by a well qualified mechanic first. They can keep you from taking home a lemon that is going to cost you an arm and a leg to keep on the road. Some companies also offer a portion of the typical new car warranties to those who buy used and are looking to keep costs down.
3. Do You Really Want To Take The Depreciation Hit?
They say that a new car depreciates in value from the second that you drive it off the lot and this is 100 percent true. These are the hidden costs that do not always come up until it has come time to trade the vehicle in. Proactive motorists are always going to consider them before they buy the vehicle and not after. The depreciation loss cannot be ignored.
It's like throwing several thousand dollars away. That's why it may make more sense for some motorists to buy used. However, if you are the type of person who will drive that vehicle until the wheels fall off? The depreciation hit won't be that harmful to your bottom line because you are going to enjoy several years without a car payment (with the proper maintenance, of course).
4. Is This a Trade In or Do You Have a Down Payment?
If you have a good credit score, you are going to be able to buy a new vehicle without a high down payment. Meanwhile, those who buy used have a different calculus that they need to consider. Manufacturers have no reason to provide incentives to motorists who purchase their vehicles. Discounted financing, cash incentives and rebates are not always going to be offered to someone who has decided to buy used.
Whether you have decided to offer up a down payment or you have a trade in with equity, there are a number of options available. Do the necessary research and wait for the best opportunity. New cars often come with financial incentives that are too great to be ignored. The down payment requirements are going to be higher in these instances but the incentives will make it all worthwhile.