A to Z Classified Ads
So you’ve decided to upgrade your current ride. Now what you’ve got to figure out is should you purchase a new car or a used one?
Well, it depends on quite a few factors. For some people, the best option is a used car. For others, it’s best to buy a new one. How good you look rolling around town and how much of a monthly car payment you can afford should not be the determining factor here.
Rather than purchasing the most expensive car that you can afford, address your specific needs. Keep reading for a couple questions you should be asking yourself to ensure you are making the right decision when it comes to new vs used.
Do I have enough for a down payment?
Assuming you’ve got a good credit score, you probably won’t have too many problems purchasing a new car with a small or even nonexistent down payment. Manufacturers want to give you a reason to purchase a new car rather than a used car. There are often also rebates, cash incentives, and discounted financing options available.
When you purchase a used car, in the vast majority of circumstances you’ll have to pay a down payment either in cash or a trade-in with equity.
Don’t rush in the process of searching for the right car. If you do your homework and play your cards right, there’s always a chance that you’ll find a new car with a fantastic mix of manufacturer incentives that will cover those down payment requirements.
Am I willing to take the depreciation hit?
From the moment your car leaves the dealer’s lot, its value drops quite a bit. Even if depreciation costs aren’t something you’re expending, it’s something you’ll definitely realize when the time comes for you to sell your car.
Say, for instance, that your car depreciates $8,000 in value between the time you purchase and the time you sell. You won’t get those $8,000 back.
Cars are one of those assets that depreciate very quickly initially, slowing down over time. People often see cars as a big purchase or as an investment. Although it can be very useful, your car is going to depreciate, rarely appreciate.
It is for this simple reason that a used car is typically the better choice. Do you really want to risk your car losing half its value in the first few years?
Do I have enough money to maintain a used car?
Many automobile manufacturers offer free maintenance for a period of time after purchase. This means you’ll be saving a lot more money on maintenance for a new car than you would with a used car.
If you are considering a used car, it’s always a good idea to have it inspected by a qualified mechanic to see whether it is in good condition and ask for a detailed vehicle history report so that you know you aren’t getting a car with too many issues.
That being said, the fact of the matter is that a used car is going to need more maintenance than a new one. Even if nothing’s broken, things wear out and you’ll need to replace them more quickly.
Purchasing a relatively new used car may allow you to get the benefits of the remaining new-car warranty. Check the terms and conditions before purchasing. There’s also an option that many dealers offer of purchasing a used car with a limited warranty at a slightly higher cost.
Can I deal with my car being frequently in the shop?
Besides needing more maintenance, a used car will also probably need more time in the shop. Small repairs may only take a couple hours or a day, but a major repair could take a week or even more.
New cars tend to spend less time in the shop, and some dealers even provide temporary cars for you to use during that period. If you purchase a used car, you have to make peace with the time that it will spend in the shop and know that you can get along without it for a little while.
After you’ve addressed these questions, you should have a much better idea of whether or not you should purchase a new car. Happy car shopping!
Search our classifieds to find used cars for sale in Thailand…
This post was created with our nice and easy submission form. Create your post!
