Comparable Car Considerations – 6 Factors to Consider When Deciding Between a New or Used Car

So, you’ve decided to buy some wheels. Lucky for you!

A car is a great way to get from A to B. It saves time, is more comfortable and considerably less smelly than public transport. Plus, can always be sold later on to recoup some loss. This may be the first time you’ve taken the plunge or the tenth. Regardless, you’ve still got a decision to make – do you buy brand new or used? Decisions decisions… Let’s examine six different factors you need to consider when making this purchase.

Do You Have the Money?

If you’ve been saving up your pennies for a while you may be able to buy a used car straight out. If you’ve been saving for even longer, or you have a good salary, you may be able to even purchase a brand new one right away. You can check and compare prices at Autovolo. Otherwise, you’re going to need to consider car loan providers, such as Latitude Finance.

A car loan provider can lend you a portion or all of the purchase price of your wheels. It’s worth noting that a used car (depending on the make and model) may be cheaper than buying a brand new one.

Don’t forget to consider insurance costs. Insurance for a new vehicle is often higher than a used one, but ultimately it depends on the make, model, and other factors. Once you narrow down a few options, run a new vs. used car insurance rate comparison to make sure you’re aware of the full financial picture.

Warranties

Warranties are really important when buying any consumer goods, including cars. Unfortunately, car manufacturers aren’t perfect and sometimes models roll off the production line with faults waiting to happen. A warranty protects you, the buyer, and ensures that any major repairs occur without cost to you.

While all used cars come with a standard warranty, many used car sellers won’t offer extended warranties without charging through the roof for them. A brand new car often comes with a longer, factory warranty so you can rest assured that you’ll be protected for a few years at least.

Just check out the fine print – some dealers want you to bring your wheels back to them for servicing or they’ll void your warranty.

Running the Risk

Buying used comes with a level of risk. If you are unlucky, you can wind up with a lemon that costs more to keep it running than you paid for it in the first place! Or if you buy privately, the seller can conveniently neglect to mention major issues with the car.

You have a few options here. You can arrange for a mechanic to inspect the vehicle prior to purchase, and they can give you a sense of what sort of work if any, the car needs. Although, this costs money, and you need to figure out if you can afford to keep doing it until you find your perfect car. If that’s the case, it may be worth saving more or getting some extra finance to get a brand new machine.

Bells and Whistles

Say you’re the type that always upsizes your food when getting take-away. Or you just have to have the latest smartphone and computer, with all the apps and software. Buying a new car gives you the option to upgrade – special tires, sound systems, extra safety measures, and advanced features. If you want all that in a used car, you have to look very carefully and be very picky – and if you’re on a tight timeframe you may not have that luxury.

Safety

Newer cars tend to have higher safety ratings when compared to older models.

Personal Preference

Really, it comes down to what you’d prefer to have. If you want a shiny, brand-new machine with that special smell, and you can afford it or afford loan repayments, go new. If you want to save some pennies and are happy with a used product that still does the job, buy used.

To Conclude

Think about the safety rating, consider your personal preferences, work out a budget or arrange some finance, know your risks and ensure you have a great warranty! Happy driving.

Dragan Sutevski

Posted by Dragan Sutevski

Dragan Sutevski is a founder and CEO of Sutevski Consulting, creating business excellence through innovative thinking. Get more from Dragan on Twitter. Contact Dragan