Automobiles

Published on April 12th, 2019 | by Bibhuranjan

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New Car or Used Car? What’s Best

Circumnavigating around the factors that determine the purchase of a vehicle can be gruelling, especially if one is a first-time buyer and lacks expertise support. The unit price may never be a consideration for some buyers, but getting experienced advice from reputable luxury car dealers such as the Sandown-Group is valuable. The investment aspect of cars is close to minute. The moment a car surges on the road, its value, just as its fuel, begins to condense. So, whether you opt for a fresh new car or an approved used vehicle, depreciation is inevitable.

Acquiring a used vehicle may be dependent on its make and model (some vehicle brands are more tenacious), year of manufacture, mileage, service and maintenance history, and many others. The purpose of the vehicle could also be used to eliminate other factors in the process. Buying a new car is entirely subordinate to the users’ needs and bank statement. Financial experts may seem to weigh more on buying a used vehicle because of affordability and lower interest rates. However, this information may be inadequate as it does not consider how long a buyer may want to use the car.

So, how well are you informed when it comes to deciding whether to buy a new or used car? Below is a contrast on how the two outplay each other:

Depreciation

The depreciation rate of a vehicle skyrockets during the first year, and buying a used one may save one from drying out their pockets to initial service costs. Depreciation relatively subsides after the first year, and getting a vehicle after this period has its rewards. However, depending on how the car has been maintained, the running costs may exceed the initial value, and in the long run, a cheap buy may be disastrous. Insurance cover is also dictated by the value of depreciation. In cases where a vehicle is involved in an accident, the cost of insurance cover and claim may equal the current price of the vehicle.

Warranty

Vehicles that have a warranty tag usually relieve the burden of consumers to compromise on making direct purchases, especially for used cars. A safer way of doing so is by buying from dealers such as Mercedes Guildford who are certified to sell approved used vehicles. Approved used cars have extended warranties that cover similar features as those of a new vehicle. They usually disseminate much of the risks associated with buying a used vehicle and have better financing terms compared to new ones.

Interest rates

A variety of financing options are available for both types of cars, but their interest rates on loans vary noticeably. Financial institutions may jump at the opportunity to loan new car buyers in an attempt to amass huge profits, but the risks associated with lending used car buyers are far much less.

Technology

New vehicles come installed with unique features that are more efficient and environmentally friendly. This convenience, however, comes with an extra cost. When buying a car for functionality and not it’s aesthetic features, this may dictate a second-hand purchase.

A thorough compilation and comparison of the above factors between the two should be done to guide you in making the best purchase. Ask for quotes from different dealers and don’t shy away from haggling despite the type of car you have settled on.

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About the Author

Bibhuranjan

Editorial Officer, technofaq.org I'm an avid tech journalist and enthusiast at heart. I like to mug up on new and exciting developments on science and tech and have a deep love for PC gaming. Other hobbies include writing blog posts, music and DIY projects.



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