New Car vs. Used Car
As a college student, you want to go out and have fun with your friends. Often, going places requires a car. Whether it’s going out to eat, to the movies, your favorite museum or anything in between, everyone wants to be able to say, “I can drive” or “I have a car,” but what are the actual benefits of having a new versus a used car?
Is it the new car smell, the abundance of tech gadgets or the shiny new paint that attracts you to that 2018 Honda Civic?
Advantages of buying a new car are…
- New cars typically come with a warranty.
- Maintenance costs are usually low for the first few years.
- Financing is offered at a lower interest rate which will decrease the amount of interest payed over the duration of the loan.
- You’ll get the latest technology, like having the ability to connect your phone and other devices to your car.
- Better gas mileages and lower emissions can also be attractive.
Disadvantages of buying a new car…
- COST!! New cars are ALWAYS more expensive.
- DEPRECIATION, the moment a new car is driven off the lot it depreciates about 20% in value. (Within the first 2–3 years that new car will face its biggest depreciation yet. You are basically throwing away thousands of dollars with a snap of your finger)!
- The longer you finance your new car, the more interest you will pay over time.
- Other fees…higher tax and insurance cost!
Advantages of buying a used car…
- They are generally much less expensive to buy upfront.
- Someone else suffered the biggest depreciation hit on the car.
- Sometimes it’s easier to get financing on a used car, because you are no losing money to depreciation!
- Reliability data is available through customer reports and websites such as Carfax.com
Disadvantages of buying a used car…
- Condition, depending where and who you buy the used car from, the condition may be an issue.
- Reliability, often used cars have gone through the stress of the season changes and other various elements that add to wear and tear on a car.
- Higher maintenance cost… which can be a drag if you want your car to look new.
- Sometimes there is limited or no warranty offered for used cars.
One thing to keep in mind when you buy a used car is that you don’t want to waste your money! You should always do you research and compare dealerships and the market value of the car and look for the best interest rates. Also, think about having that used car checked out by a mechanic before you buy. Be a smart used car buyer!
Still can’t make up your mind about buying your own car???? Just visit Oprah!