If you're planning on buying a car, one of the biggest decisions you have to wrestle with is whether to purchase a new or a used car. The decision isn't simple and no one choice is better that the other. In general, several factors can help you understand the pros and cons of each. Read all about them below.
Warranty is an important part of car purchase. Newer cars always have better warranty terms. That's because the car is not used, tampered with or worn in any way. Second-hand cars, however, have a history of use, and even when maintained in impeccable condition, they still hold a lower warranty. However, if you're worried about a short warranty period, you may ask your dealer about purchasing an extended warranty on your used car.
When it comes to cost, a new unit will always cost higher than a used one of the same model. This is due to several factors such as the zero rate of wear, better warranty terms, exclusivity, demand and better features. As a result, new cars sell close to the manufacturer recommended price (MRP). If the demand is very high for a new car, the units may even sell above the MRP. Used cars, however, fair much better. You have more room to haggle depending on the car's condition and the features it has. You are therefore guaranteed to buy a unit below the MRP.
Financing rates & Insurance
Due to the unknown history of the car, used cars have higher financing & insurance rates compared to the new cars. This goes back to reliability. Newer cars will fare better on the road so financiers & insurers offer better rates for them. Government policy may also affect used car financing rates driving them higher in a bid to lower emissions. However, note that the financing or insurance rate you're getting is not a reflection of the car's quality.
Once bought, new cars pose very little maintenance needs. They have zero wear so your maintenance costs in the first years are minimal. For used cars, there's always that unknown element. You never know how the car has been handled or serviced in the past. A well-maintained used car will pose little maintenance challenges. However, if the car had been neglected, you may face some serious maintenance costs. Getting a valuation first and checking the logbook records can help you better understand the car's past condition.
Often, it comes down to the particular cars you're buying and the purchasing deal you're getting from the dealer. The one thing you can be sure of is that a new car will give you better reliability and a used on will be cheaper to buy. To get a second opinion, contact companies like Performance Automobiles.
When I was younger, I was desperate to have a big muscle car: something that you heard before you could see it and that had a lot of power when you put your foot on the accelerator. Of course, I couldn't afford a really cool car then, so I had to make do with borrowing my mum's car! These days, I can afford new cars but it's the old muscle cars that still have my heart. They may not have been as reliable, but I'm still really excited to be able to drive them. This blog is my search for muscle cars on sale around Australia.