Deciding about buying a car can be tedious as they are a variety of choices available to you. Sometimes your indecisiveness may not spring from the make or model of the car but may be related to getting a new or used car. This is an important decision and can significantly impact your finances over the next few years. It is vital to know that purchasing a new car cannot be classified as an investment. Your options may be determined by whether you need to pay in cash or qualify for a loan.
Advantages of a New Car
The significant advantage of purchasing a new car is that you are entitled to a warranty. Newly-made cars rarely require repair during the first few years, so you may need to only focus on the car’s maintenance. Often times the car dealer may offer financing at a meager interest rate, which can lessen the amount of interest you may have to pay over the life of the loan.
In addition, newly made cars have the latest technology. This means that you most likely will find vehicles with lower emissions and good gas mileage. You may also get a hybrid which may help reduce the amount you will spend on transportation every month. Lastly, brand new cars tend to hook up with your mobile phone and other devices quickly.
The disadvantage of a New car
The major disadvantage of getting a new car is that you lose money once you drive it off the parking lot. A brand new car takes its highest depreciation within the first three years. You are throwing off several thousand dollars that can never be gotten back.
Another disadvantage arises from purchasing a new model. They are times when they tend to alter the design or switch engines, and that model and year tend to develop problems. To avoid such an issue, it is preferable to get a used car.
Advantages of a Used Car
The significant advantage of getting a used car is allowing someone else to take the highest depreciation hit on your car. You may be able to sell that car at the exact amount you purchased it.
Also, when you buy a new car, it is easy to save up and pay in cash. You may choose to review the consumer report and select a model that has good performance.
Lastly, another advantage is the insurance rate. Although this depends on the model of your used car, the insurance rate may be lower compared to a new one.
Disadvantages of a used car
The highest disadvantage of purchasing a used car is reliability. You cannot ascertain the extent of its use, and you may need to do more repairs on it. An option is to buy a certified pre-owned car through several car companies. With the recent technologies, cars have become more reliable, and different models do not require repairs until they are up to 100,000 miles and above ten years old. You can buy a car that is just three years old and sell it when it’s five without doing any repairs on it.
When shopping for a used car, patience and flexibility are needed. This enables you to get the best option in the market that works best for you.
Everyone will eventually need to decide for themselves what the suitable option is. Depending on what you decide, you should make sure you can afford the car or pay cash. Always do your in-depth research and make sure the car has a good history, good reviews, and reliability. Canadian Approval Center can help you get the car of your choice at the best terms possible. Contact Canadian Approval Center to get more information.