Used Car vs. Brand New: Pros and Cons

When it comes to buying cars, you have two options: buy a brand new car or a used one. There are significant differences between the two, primarily the price. Brand new cars cost a lot more than used cars, depending on the brand, type and model of the vehicle. Do you need help in deciding which one to buy? Let this pros and cons guide help you with your decision.

Brand new

  • Brand new cars are much more expensive than used ones. Their price depends on the brand, make and model of the car. You can also buy on a car loan. Financing institutions do not usually offer used car loans.
  • Cars are not sound investments because they depreciate at a rapid rate. Unlike real estate that only appreciates over time, a car’s value diminishes every time you drive off. The wear and tear, as well as the mileage over a period of time, are two determinants of depreciation.
  • Maintaining a brand new car is a lot easier as all the parts and components are brand new. You don’t have to take it to the mechanic every once in a while.
  • You can rely on the efficiency of a brand new car when you go on a trip. You don’t have to worry about breakdowns with a brand new vehicle.
  • Insurance rates for brand new vehicles are costly. If a car costs more, the insurance also costs more.
  • Financing options. There are several car financing options you can choose from.
  • Brand new cars feature cutting-edge technology that may otherwise not be in used cars.
  • Resale value. If you are the first owner and you plan to sell your car, it is a lot easier to do so.
  • Fuel efficiency. Newer car models are now more fuel efficient.

Used

  • Used cars are less expensive than brand new ones.
  • Used cars depreciate a lot faster because of years of wear and tear by previous owners.
  • You may need to maintain used cars more often and replace parts before you can use them.
  • If there are parts that need replacing or fixing, they may not be too reliable especially on long trips.
  • Insurance costs are way less.
  • Financing options. You may have to pay a lump sum cash for used cars.
  • Old and used cars may not have the latest technology that brand new ones offer.
  • Model preference. You can still drive a phased out model if you look for one in used car dealerships.
  • Resale value. It is more difficult to resell a used car.
  • Fuel efficiency. Older models are not as fuel efficient.

If you are looking for dealerships of used cars, Layton, Utah is an excellent place to go to. There you will find a wide variety of used car options that will fit your budget. Make sure though that the one you choose will not conk out at the worst time, especially if you are in the middle of traffic or on a road trip.

 

 

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