There’s something special, and tempting, about getting a brand new car. No one else has played street-racer, forced the glove box shut, spilled coke in the cup holders, or left paw prints on the leather. And for a while, you’ll look like you’ve really arrived.
Just understand that even before the new car smell fades and all the little nubs wear off the tires, the value of your vehicle will plunge off a cliff. If you have to part with it early, you’ll be dealing with some harsh realities that can leave you underwater in a big way. Unless you’ve bought an exceptionally in-demand model, a new vehicle typically loses about 20 percent of its original value as soon as you take delivery.
Truth be told, when buying a car, you have a range of purchasing decisions to make. Not only do you need to pick the make and model, you also need to decide if you want to buy a new or used car. This answer often comes down to the best possible deal suitable for your needs and your budget.
If you are in the market to buy a car, we’ve collaborated with motus.cars to bring a list of some pros and cons, for each option for you to consider:
Advantages of buying a new car
- Knowing that you are the first owner of the car creates peace of mind
- New cars typically come with a comprehensive manufacturer warranty and full-service plan
- A new car will generally require less maintenance than a used car for the first few years
- You often have the choice to customise your new car with various options and luxury features, as well as specifying the exterior paint colour you would like the car to be in
- New cars come standard with the latest gadgets, engine technology, fuel efficiency rates and safety features, so you can be sure you are getting the most for your money
Disadvantages of buying a new car
- The biggest disadvantage of buying a new car is that you lose money on it as soon as you drive it off the dealer floor. A new car takes its biggest depreciation in the first two or three years
- Optional features will add to the price of the car
- New cars are more expensive – so you get less bang for your buck
- Dealerships will only sell the latest model of a particular car
Advantages of buying a used car
- The biggest advantage of buying a used car is that you’ve let someone else take the biggest depreciation hit on the car
- If you buy a used car, the reduced purchase price results in lower finance costs and lower insurance premiums.
- You could potentially still benefit from the balance of the motor plan and warranty which will be transferred with the car
- You have a far wider choice of vehicle when buying a used car and can consider older models and a wider variety
Disadvantages of buying a used car
- The biggest disadvantage of buying a used car is that it may not be as reliable, or you may need to do more repairs on it. However, you do have the option of buying a certified pre-owned car through a motus.cars dealer.
- The buyer cannot add optional extras and safety features to the car
- The buyer must select from the used cars for sale and cannot be too selective on certain features like colour, year etc.
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