Should I buy a new or used car? One of the biggest questions asked by car buyers. Here we crunch the numbers and what to consider with a 3rd option.
Is It Better To Buy A New Or Used Car?
The decision is usually made easier if you’re buying a car totally from emotions because who wouldn’t want that new car smell, full auto manufacturers warranty & of course, the bragging rights that go along with buying a new car but stop!
Don’t dive in yet and splurge out on a new car until you have crunched the numbers and know which is the right way to go economically & represents the best value for money, remembering to factor in vehicle depreciation costs.
To highlight the differences, have a look at this old chart but still relevant today that I found over at Yahoo Autos compiled by Liza Barth ConsumerReports.org showing the cost differential from a new vehicle.
To crunch the numbers, we looked at the deals that were offered for a few popular 2012-model-year (MY) sedans and SUVs and compared them to the used-car pricing for the same model from 2010 and 2008. In some cases, with a slight increase in monthly payment, you can get a new car without the used car mileage and with a full manufacturer’s warranty. Click here to view full article & chart
New Car Depreciation Costs V’s Used Car Maintenance?
Ok, you might think, well, the little bit extra in payments as the chart illustrates, I can get that new car. But do your research and factor in the weekly/monthly running costs & this includes the car depreciation. Which is more for a new car in the first three years.
On the other hand, you need to factor in more for maintenance costs because the previous owner will not have usually put back everything they have taken – meaning the tires may have 20% tread left, engine oil change due (scheduled service), or brake pads are 80% worn, so they will need replacing sooner with a used car purchase.
So, Should I Buy A New Car Or Used Car?
It may appear a new or slightly used car if it’s a demonstrator model could be the choice for convenience due to good used cars hard to come by. But as you can see the cost is significantly higher on most popular makes and models when you factor in the car depreciation when you drive out of the showroom. If that doesn’t worry you and you can’t get past the 3 pros of buying a new car being:
- New car smell
- Bragging rights
then go for it.
The Best Of Both Worlds – Near-New Car At A Used Car Price
This 3rd option may be worth considering. Trying to find the best cheap used car that fits your needs and wants without having to keep stretching your budget is frustrating. So, this 3rd option may be worth considering. Check out government auto auctions. You can check out the recently sold prices near you. These vehicles usually have;
- Low miles
- Good maintenance record
- Good Interior
Watch the video and learn how to find a government car auction near you. You can also search 4,000+ auctions USA-wide from the comfort of your lounge room to find good quality cheap near-new cars.
Used Car Maintenance Tip
Putting about $30 per week away in a separate bank account for car servicing and repairs will give you safe and happy motoring and pay for the unexpected because unlike a brand new car you may not have a Manufactures’s warranty. Also, learn what to look for when buying a used car so you don’t buy a lemon.