Should You Buy New or Used for Your Next Car? – Guest Post
Should You Buy New or Used for Your Next Car?
by Alek Sabin
When hunting for a new car, it crosses everyone’s mind whether or not they should aim to get a new vehicle. They wonder whether it is worth it to get a completely new car that is under warranty, and pretty much is guaranteed to work for a while, or whether to save the money, upfront, and get a used car. The savings of getting a used car to a new car aren’t imagined. In general, a decent used model of a vehicle is roughly $5,000 cheaper than its brand-new counterpart. However, sometimes the reliability of a vehicle, or even just the feeling of a new car, is worth it to a potential buyer. Here are some questions that everyone should ask themselves when deciding between a new or used car…
How High Is Your Down Payment?
First of all, if you can’t put down a significant down payment, or don’t have a vehicle with significant trade-in value, then the cost of purchasing a new car is liable to skyrocket. This is because vehicle loans tend to have a high interest rate, especially if you’re down payment isn’t that high. A high down payment can make it easier to justify the cost of purchasing a new vehicle, since it closes some of that price gap.
Can Your Car Make You Money?
The economics of your vehicle can change drastically if you are using it to make money. When your vehicle is a form of income, then the potential gains need to be considered against the expenses. Essentially, you need to think of your vehicle as a proper investment. For example, if you are purchasing a new truck that is necessary for the work that you do, then dependability is something that you don’t want to skimp on, as the time in a repair shop could mean lost income and revenue for you and your business.
Likewise, if your vehicle is representing your business, then a new vehicle sends a significantly different message about the state of your company and how you choose to represent yourself than a used vehicle does. On the other hand, if you are using your vehicle for a rideshare service, then it’s important to consider that a new vehicle’s depreciation will dip into your profits, each day.
Does the Car Need New Parts?
When you buy a vehicle, you have to think about it as if you’re buying all of the parts that come with it, rather than just a singular product. Because of this, there are hidden costs that are associated with buying a used car. For example, if you purchase a used car, but a part breaks within the engine, then the cost of labor and parts for the repair eat into the savings that you got from not buying a new car. This is why it is important to always consider the mileage and state of a used vehicle when you purchase it.
Another note: always check the tires on the vehicle that you are purchasing, since older cars may have bald or worn down tires, and may need to have them replaced.. New tires are expensive, and the cost of replacing those tires should be factored into the price of the entire vehicle.
Do You Have a Way to Work the Car?
If you are buying a used vehicle, and don’t want to get buried under the cost of paying a mechanic for the fixes that might arise, then an alternative is to do a portion of those repairs on your own. This brings up two other questions, though: do you have the necessary knowledge to do repairs on this vehicle? And do you have the necessary space and tools to do repairs on this vehicle. If you have a home garage, then you at least have the space, but if you live in an apartment then this might not be feasible. However, if you can answer yes to both of these questions, then it reduces the risk of buying a used vehicle, which increases the likely savings.