Buying a car is one of the most exciting and most significant decisions you will ever make. However, it is an expensive purchase that you’ll make and one that will stay with you for a couple of years. So, before you spend any money on a car, it is crucial to figure out whether a new car or a used car is the best way to get a great deal.
Generally, the price of the car plays a crucial role in the decision-making process. But, features like reliability and insurance cost are also important factors to have in mind. So, here is a head-to-head comparison of new cars versus old cars and which comes out the winner.
1. Buying cost
The most significant advantage of buying a used car is that it is cheaper. You can get a three to four-year-old vehicle for less than half the price of an average new car and still get better features than a brand new car.
Looking at how much it costs to own a car, reports have shown that the longer you take to own a car before selling it, the less it costs to own per year. The depreciation is usually steep during the first two years, so the longer you keep it, the less it costs to own. It means the cost of buying and owning a used car is much less than that of a new car.
2. Insurance costs
With the numerous new and used cars for sale, you must be wondering which the best is when it option when you consider insurance.
The upfront cost of buying and insuring a new car is more expensive than used ones because it is expensive to insure costly vehicles, and new vehicles are more expensive than used ones. However, new vehicles also have several factors that can lower insurance rates, such as:
- New cars with modern safety features, e.g., airbags, anti-lock brakes, and traction control, look better to insurers; thus, they offer discounts since in case of an accident, the passengers have a chance of survival, meaningless payout for the insurance company. But, unfortunately, most used cars don’t have these features.
- Once production is stopped for a car model, it isn’t easy to find spare parts making them very expensive to insurance companies. It means used cars with vintage pieces can cost more to insure than a mainstream new car.
The maintenance cost for new cars is much lower than used cars. A new car doesn’t need routine maintenance at all during the first thousand miles. Also, you won’t need to perform pricy tire or battery changes for at least three years.
When a breakdown occurs, you have a warrant to cover you since the factory warranty covers major repairs for new cars in the first years.
However, the longer you keep the car, the maintenances cost goes higher. Meaning if you buy a used car, you will probably drag the car back and forth to the repair shop.
The choice between new and used cars for sale is down to your preference and happiness. If a new car will put a significant strain on your budget, but you can afford a decent used car, then it’s better to go for the one you are comfortable with. Most dealers provide new cars and used cars for sale that you can go through to buy the best choice for you.