There are many advantages to buying a used car including cheaper insurance rates and registration fees and the lack of a monthly car note. But there are many disadvantages of buying a used car as well. In determing whether or not to buy a car new versus used, you should consider your budget and your ability to carry a monthly car note if you will be financing.
Repairs
You will likely need to spend more money on repairs sooner with a used car versus a new automobile. As cars age and succumb to more wear and tear, they require maintenance in order to upkeep them. If you purchase a new car, it is less likely that you will have to worry about any major repairs for at least the first few years. Although, you will still need to keep up with simple maintenance like oil changes and tune ups.
Warranty
Used cars come with no warranty. If any major part of the vehicle malfunctions you will be on your own as far as paying for repairs. With a new car, the vehicle is under warranty for possibly up to 100,000 miles (depending upon your warranty), and potential problems will be addressed by the dealer or manufacturer so long as you have kept up with your end of the warranty which may require a regular maintenance routine like tune ups and oil changes.
History
When buying a used car you may not have full access to the vehicle's history. You can order a vehicle history report from companies like CarFax which may provide some information about any accidents the car may have been involved in, but a vehicle history report can only provide information pertaining to what previous owners reported to the department of motor vehicles or their insurance company. Some cars may have had numerous owners, and each one may not be truly aware of what care another owner may have taken with the vehicle.
Insurance
With a new car, you can qualify for GAP insurance. GAP insurance allows a car owner to completely pay off their loan balance in the event of a total loss. Normally, insurance companies will pay an insured the value of the vehicle. Since the car loses value as soon as it is driven off the lot, this sometimes makes it impossible to pay off the balance of your car loan. For example, you may owe $22,700 on your car loan, but a year after purchasing the vehicle, your vehicle is only worth $18,200. This would leave an owner with a balance of $4500 on their car loan and no vehicle to drive. GAP insurance will give you what your newer car is currently worth, plus bridge any difference to completely pay off the loan balance.
Options and Technology
New cars come complete with the latest in options such as mp3 player compatibility and GPS. Car technology is constantly evolving. An example of this evolution is car air bags. Earlier air bag system were prone to hurt children when they deployed during an accident according to Cars.com. Many new airbag systems avoided causing such injuries. Also getting a new car allows you to pick options such as leather versus cloth seats, or adding tint to your windows. Many dealers will work to accomodate your personal request by showing you a model that fits your taste, or offering you customization packages for an additional price.
0 comments:
Post a Comment