Brand New or Used Car?

Nothing beats that fresh smell of a brand new car as you take it around town for the first time. But is it really better compared to a used car? Well just like any matter, it has it's pros and cons. You can read below what are the advantages and disadvantages between one and the other.

Brand New

Advantage:

Warranty - depending on the brand it is standard to have a 2-3 year warranty on your brand new automobile.

Peace of mind - having warranty and support you have the peace of mind knowing your unit is from the dealership and covered from any possible defects or problems in the near future.

Financing - whether 1, 2 or all the way to 5 years is your payment options to pay for your new car.

Trade-in - some dealerships such as Gateway Motors have made a name for themselves by accepting trade-in units at a high appraisal and you only have to shell out a little bit more for a brand new unit.

Disadvantage:

Premium Price - Great things come at a price. A downside to dealing with the dealership is that you can't negotiate and you have to pay a premium price based on the SRP (Suggested Retail Price) not to mention certain add-ons such as commision for the sales agent and miscellaneous expenses.

Depreciation - unfortunately as you take home your new car, it instantly loses about 30% of it's value from the get-go.

Used Car

Advantage:

Avoid Depreciation - since a brand new car loses about 30% as it rolls out of the dealership, that is no problem when dealing with a used vehicle. You get value for your money as you can take your pick at a car you need and want within your budget range.

Smaller premium on Insurance - having an older model car is not that bad, especially when it comes to insurance. The older the car, the lesser it's value may be but so is your premium for you insurance coverage.

Take note: Some insurance companies don't accept car models that are older than 10 years.

You can haggle - when acquiring a used car, you can always negotiate. Take a closer look and you can spot some flaws here and there that you can use as leverage to get that extra discount.

Disadvantage:

Spot Cash - unlike in the dealership where you can get a loan, most of the time when dealing with used cars you've got to pay for the unit upfront. And purchasing a used car may be cheaper than the retail price, but paying for the value of the entire unit at once is still not good for your pocket.

Acquired problems & issues - a drawback to a used car is that you never know what problems and issues the unit you're purchasing has. Sometimes the symptoms of the problem does not arise till it's too late when you've already struck a deal and your driving away with the car.

Lack of Spare Parts - varying on the model of the unit, it may be difficult to find parts for that older model car. If you're lucky you can find one at a surplus shop but if not you may have to order it abroad which would take some time and effort on locating.

Over-all a car is a car and is an absolute necessity now a days. You can never go wrong with any purchase as long as you've done your homework and figured out your need. The most important part is that you take good care and maintenance to your vehicle and it will last you many many years of service.

Drive safely!!