Recently updated on February 28th, 2022
Have you decided to buy a car but getting confused about which one you should buy, a new one or a used car?
New cars come with a higher price and insurance costs with the latest safety features. On the other hand, buying a used car saves you money. Generally used cars prices are almost 40-50% lower than new cars.
To choose a vehicle, you should know all the advantages and disadvantages of both a new and a used car.
We are here to clear your confusion about New vs Used Car. So, without further ado, let’s dive in.
Buying A New VS Used Car: Which Should You Choose?
What to Consider When Buying A New Car
All the advantages and disadvantages of buying a new car are given here.
Advantages Of A New Car
- Fewer issues, minor repair
New cars are reliable because they have fewer issues. Most of the time, you can use a new car for three to five years without worrying about any significant issue that needs almost no repair and a little maintenance. Most of the cars have at least 100,000 miles warranty. So the care may need no considerable restoration. It frees you from the worry of the cost of frequent repair and maintenance costs.
- Manufacturer’s warranty
They come with different types of warranties. These warranties may cover significant problems and repairs for a few years after owning the car. So you do not have to pay for the extra cost of restoring a vehicle.
- Latest technology
A new car has all the updated features and technologies. You can also choose a customized car with the preferable color for interior and exterior and all the features you want. So you do not have to add any new devices after they come from the factory.
Most of the countries now are very strict about safety laws. So the manufacturer is now giving focus on safety with all the advanced technologies. The mandatory technologies are tire pressure monitoring and stability control system,blind-spot monitoring systems, adaptive cruise control, lane-keeping assist, etc. Some have built-in software to alert when someone is driving without a seatbelt.
- Fuel economy
A new car will give you great mileage that you need fewer fuels than a used car. Also, the engine has a low risk of emission that keeps it running for a long time without any repair or replacement.
- No worry for history
When you buy a new car, it comes directly from the factory. So you don’t have to worry about its unknown past or how it was treated and its mileage.
Disadvantages Of New Car
A new car is far more expensive to buy than a used car. You can go with the auto loan to finance your purchase and pay interest on the loan for the lifespan. Few dealers may offer you a low-interest offer that can lower the interest amount, but you still have to pay for it a lot.
- High sales tax
A new car comes at a high price. Moreover, you have to pay much more sales tax than a used car, which increases the purchase cost one step higher.
- Higher insurance cost
Remember, A new car is an expensive purchase; this does not mean it is an investment. Investments make you money. It does not stay fresh forever and deprecates. As time goes by, the vehicle becomes old, the car’s value starts to lower, and it can be up to 20 %. It loses value earlier than a used one with a few years of use. The more you drive your new car, the more it loses value.
More to explore – How to Test Drive A Used Car? – 12 Important Facts You Need to Know
What to Consider When Buying A Used Car
All the advantages and disadvantages of buying a used car are given here.
Advantages of Used Car
- Less expensive
If you intend to buy a used car, it will cost you less than a new car. It may fit your budget perfectly. A new car loses its value by almost 20% within one year of use. So if you are buying a nearly new car with advanced technologies, it will cost you about 20% less.
- Slow Depreciation
Depreciation is slower in a used car than in a new car. After leaving the dealer’s point, a new car loses its value. You will not get a fair deal if you want to sell the car after a few years of use. But if you buy a used car, it may depreciate by about 9-12 % every year. So if you decide to sell the vehicle, you will get a handsome amount worth the value of buying it.
- Low insurance cost
Full-coverage insurance costs much less in a used car than a brand new one. To have insurance for a used, low-priced car, you do not have to pay more to insure it.
Some vehicles now come with warranties for drivetrain 200,000 miles for expensive parts. So after buying a used car, you can still have this warranty if you purchase a certified pre-owned vehicle with the manufacturer warranty as to the original.
- Low sales tax
If you intend to buy a used car at a lower price, the sales tax will also be reduced with the price. So you have to pay much less sales tax for your vehicle than a new car.
Read this to learn – 10 Best Used Cars Under 5000 Recommended By Experts
Disadvantages Of A Used Car
- No option for a customized one
When you buy a used car, there is no option to have the customized features you want in your vehicle. You have to have more research to have most of your preferable features, color, etc., but not all of them.
- No guarantee of reliability
The new cars are reliable for having fewer issues that need repair. But buying a used car has no reliability. You can face any problem just after buying it, and it also may need repair.
- It may not have a warranty
Suppose you buy a car used for more than a few years, then it may not come with a manufacturer warranty. This is one of the disadvantages of a used car.
- Higher mileage
Sometimes a used car has higher mileage, which can cause a reduction in the lifespan of the car. With a higher mileage car, you have to replace it, which may add more to your total cost of buying the vehicle.
To decide to buy and compare between a new or used car, you should consider all the advantages and disadvantages for them. If you do not have any issue with the high price, you can go for a brand new vehicle.
Otherwise, you can buy a certified pre-owned car for a reliable, low-price purchase. A new vehicle needs almost no repair for a few years after buying, but a used car may need repair right after purchase.