If you have decided to replace your existing car, then the main question arises: Do I need a used or new car? There is no one-size-fits-all. There can be several reasons to prefer a used car over a new one. When forming the used vs. new decision, it is required to examine your finance and life needs.
Here we have mentioned questions that will give you clarity to make the right decision.
Do You Have a Trade-In with Equity or Down Payment?
If the credit condition is good, then you will have fewer issues in purchasing a new car with less or down payment than a used car. Most of the manufacturers provide discounted financing, rebates and cash incentives for brand new cars that you may not get in the used-automobile market.
When you choose to finance a used car, you will require fewer funds to buy it both in case of trade-in with equity or cash. Automax LV is one of the dealers in affordable used cars in Las Vegas.
Does it make sense to suffer the extensive depreciation of a new car?
Depreciation is referred to as the loss in the value of a car with passing time. It is a hidden type of cost that people face at trade-in time.
A new car can convey status but its reduced value will not give you comfort in the long run. It will not make people cleverer, affluent or interesting. Thus, depreciation is one of the major reasons that give more sense to people to buy used cars.
Do you like spending $10,000 every 3 years?
After a decade, that old car would not be of any worth in regards to trade-in value or resale value in any means. Buying a used car also leads to low personal property taxes, insurance premiums and more savings.
Are Maintenance and Repair of a Used Car affordable?
Some auto manufacturing firms provide free maintenance for the first two years of brand new-car. This is in contrast to the average cost of maintenance for a used car. Take steps to lower the probability that you are purchasing an “issue prone” used car.
This can be done by getting it evaluated by a qualified mechanic. Get an elaborate vehicle history report to detect the issues.
With time, or covering 30,000 plus miles, a few types of issues regarding wear and tear will crop up. Replacement and maintenance cost will be more in case of a used car than a brand new one. These are hard costs that should be addressed as soon as they arise.
On buying a slightly used car, you can benefit from some part of the warranty and protection of the new car that is still valid. Check the automaker’s rules to transfer the warranty prior to buying it. Many car dealers also provide “certified pre-owned cars” with a limited factory-backed warranty.
Having decided to buy a car, you must all these questions to yourself. It will definitely help you become a smarter consumer and also navigate the used car decision-making procedure.