If you are planning to purchase a car, the next thing you are probably thinking about is whether you will be buying a used or a new one. While this is not an easy decision to make, at the end of the day, it will still all depend on what your needs and requirements are.
Most of the time, our purchasing decision relies on the amount we can afford for the monthly cost of the car, but this is not the only factor you need to consider. Instead of just deciding based on your ability to afford a vehicle, go back and think about your life and financial requirements. There is also this common belief that a used vehicle will be able to save you money, but that is not entirely true because there are other important things which you need to take into consideration, and that includes the costs of possible repair and maintenance that a used car entails.
So, if you are trying to arrive at a decision and are torn between these two options, here are the questions that you need to ask yourself to find out which is best for you:
1. Do you have a trade-in equity or a down payment?
Buying a new car is an ideal option if you have a good credit history because chances are, you will be required with little or no down payment at all than when you opt to buy a used one. This is because incentives are often offered by manufacturers for new cars, and this is something that is not available for used ones.
Even when you finance a used car, you will still be required to pay a certain amount of money in the form of either cash or trade-in equity. If your need for a vehicle is not really that urgent and you are still willing to wait, you might be able to encounter an opportunity where you can get larger incentives from manufacturers to cover or reduce the down payment requirements.
2. What kind of use will the car be and what distance will it be traveling?
If you are planning to use your car in longer distances, you should know that a new one will be less prone to breakdowns, and this should be one of your considerations in your decision-making. However, a new car depreciates faster than a used one especially when it has been driven on poor roads, so even if it is only a year older, it already loses almost half of its value.
3. How important are the specifications to you?
With brand new cars, advanced technology and new features and specifications can be expected, but the used ones can be sold with or without the specifications. It means that for someone who is very particular with the specs, a brand new car might be an excellent choice. On the other hand, if the specs are not that important to you, then a used car can be an ideal choice. The price can even be decreased if the dealer can remove some more of the add-ons.
4. Can you afford to maintain and repair a used car?
Some brand new cars come along with free maintenance from its carmakers for the first few years after the purchase, and this is something that is not available in used cars. However, you can reduce the chances of having problems with a used car by having a qualified mechanic do the inspection before your purchase. No matter how much the car has been well taken care of, there will be natural wear and tear on some of its parts especially when it is being used for quite a long time.
5. Can you cope with the time a used car needs to spend in the shop?
A used car can cost more in order to properly operate, but it is not just all about the cost, it is also about the time it will more likely to spend in the shop. New cars are less likely to cost money and time for repairs but if you can deal with these possibilities that a used car entails, then it might make sense to purchase a used one.