Buying a car is exciting. But it’s not something you can rush into without careful thought. One very important decision is whether you should buy a new car or a used one. This decision will impact your finances for the next few years. Let’s work out how you can come to the right decision.

New Car Advantages

The main advantage of a new car is its warranty. Most new cars don’t need any repairs for the first few years. All you need to do is maintain it as recommended by the manufacturer. Another advantage is that you’re likely to get a lower interest rate on new car financing. New cars are also equipped with the latest tech, are more efficient, and are safer.

New Car Disadvantages

The biggest disadvantage is that your new car’s value depreciates as soon as you drive it off the lot. New cars depreciate heavily in the first two to three years. Also, the model you buy may have a new engine or design, which may not be as reliable as the older model.

Used Car Advantages

The biggest advantage is that you don’t suffer the big depreciation hit of a new car. You may even be able to sell the used car for the price at which you bought it. Good financing may be available through local banks or credit unions. Since they’re cheaper, you may even be able to pay cash. You may also save on insurance.

Used Car Disadvantages

Used cars may not be as reliable as new ones. But a Certified Pre-Owned car gets you past that issue. You may not get the car in the color of your choice if you want one with a good history and low mileage. You need to be very patient and flexible when buying a used car.

Deciding

Based on the advantages and disadvantages, you need to work out what’s right for you. Whether you pay cash or finance it, never buy something you can’t afford. Ensure that you can pay it off within three years. If not, you shouldn’t buy a car. Do your research and choose a car known for reliability. And make the final decision with your head.