When you’ve decided to replace your old car, you have another decision in front of you; new or used? There are many advantages to both, so it can be difficult to decide what’s the best for you. Unlike any other kind of appliance we use, we tend to become a little attached to our cars. We often go for the ones that look the best or the one’s we believe make us look the best. We form a kind of bond with our cars, likely because we spend so much time in them. So, when you need to decide between new or used, ask yourself these questions first.
Do You Have Good Credit?
The rules of financing are often different for new and used cars. When you buy a used car, like the Subaru Impreza 2.0 for example, you’ll often have to have a down payment. You’ll either be asked to make a deposit or you’ll have to use your old vehicle as part payment. When you buy new, you may be asked for a down payment but new cars often come with incentives. Most manufacturers will want to tempt buyers into purchasing their new products so they’ll come up with ideas for reeling them in. You may find that there’s a huge cash incentive or limited time discount.
You’ll often find that you can pick up new cars, like the Forester, for the same kind of price as reliable used cars, so there may not be much difference in the amount that you’re paying back. If you have good credit, there shouldn’t be a problem in you getting a new car. If you have bad credit, you may find that new car garages aren’t able to provide you with finance. Used car garages are better at providing finance for people with poor credit history. Alternatively, you could source your own finance with a personal loan and then you’ve got the pick of the lot.
Can You Handle Depreciation?
You probably already know that driving a new car away from the garage means you instantly lose value. Within the first year, a new car can significantly depreciate in value, losing you thousands of dollars. That’s money that you’ll never get back. Many people buy new cars because it shows a certain kind of status. You can afford to buy new, and to some, that’s impressive. But, a car can’t make you more attractive, it won’t make more likable and certainly won’t make you wealthier. So, can you really afford to lose that much money on a car?
In comparison, a used car won’t depreciate as quickly. Sure, you may lose some value if you keep the car for a few years, but you won’t lose anywhere near the same amount as you do with a new car. In fact, if you buy a new car and change your mind a week later, you may be in for a shock. Although many manufacturers are willing to take new cars back within a 14-day period, you may not get a full refund. That’s how quickly they lose their value.
Can You Afford to Repair a Used Car?
On the flip side, used cars often cost more than you initially pay for them. Buying from a used car garage isn’t as safe as buying from a new car garage. Used cars very rarely come with long warranties, so if something goes wrong a month after you’ve bought a used car, it’s up to you to fix it. You can never be sure what repairs will be necessary a few months down line with a used car. Most car shoppers don’t have much knowledge of mechanics, so it’s difficult to judge how well a car will run and how long it will last. Here’s what you need to look for – http://www.theaa.com/car-buying/used-car-inspection-checklist. Of course, your garage will give it a full inspection, but they won’t tell you what’s likely to go wrong somewhere down the line.
You’re unlikely to spend as much on a used car as you will lose on a new car, but it’s still worth remembering that regular maintenance costs will probably take a chunk out of your wages when you least expect it. So, is the depreciation of a new car worth it to avoid the possible unreliability of an old car? Alternatively, you could go for a car that’s almost new. You can find some at www.baldwinsubaru.com/used-inventory/index.htm. That means it may have already lost a huge chunk of its value but may still be covered by the manufacturer’s warranty. Therefore, you can drive around with peace of mind, knowing you’re covered if anything should happen and you’ll have time to prepare for the day the warranty ends.
Do You Have Time to Put Your Car in the Garage?
For some people, it’s not so much about the cost and more about the time. If you buy a used car that turns out to have a few problems, it could mean that it spends a lot of time in the garage being fixed. That’s often a huge inconvenience for busy families. It may mean that you need to make alternative arrangements to pick the kids up from school or you have to rely on family and friends to get the weekly food shop in. If you’re someone who travels a lot for your job, it could mean that you’re stuck in the office instead. And, if you’re someone who makes a living with the aid of your car, it could mean you’re without an income for a while.
It’s important to weigh up all the options and figure out what’s best for you. Find out what your current is worth and what you’re able to come up with as a down payment. Look at your credit report and do your best to manage your finances well in the months leading up to buying your next car. It’s best to visit a few garages before making a final decision, and if you’re thinking about buying a new car, find out about any upcoming incentives. It may be worth waiting a month or two to save yourself some money.