| In addition to all of the other decisions that must be made when purchasing a car, perhaps one of the most important is whether to purchase a new or used car. We all want to get the best car for our money, so it is with this in mind that we ponder both the advantages and disadvantages of buying a new or used car.
New Car Advantages
One of the most alluring parts about buying a new car is walking into the showroom and seeing all those shiny, pristine cars in all their glory. The excitement of purchasing a new car is generally what brings buyers through the front door of a dealership.
In addition, many new car dealers in Australia are luring buyers in with promises of low interest rates, attractive payment plans, incentive programs and rebates.
Another benefit of owning a new car is the warranty and the reliability. A new car is far likely to break down or develop performance problems. And if it does, it will likely be covered under a warranty program. Many people choose to purchase new cars because they don’t want to deal with the possible maintenance costs associated with a used vehicle.
Buying a new car can also be to your benefit if you need to organise finance for your purchase. Many banks and finance companies will offer a lower interest rate if you are purchasing a brand new car. Car insurance may also be cheaper as many car insurance companies offer lower premiums to people with a car that is less than 3 years old.
New Car Disadvantages
A new car is generally much more expensive than its used counterpart, so purchasing a new car is simply not within many people’s budgets. The weak global economy has also caused people to rethink many of their larger purchases, which may include a new car.
Used Car Advantages
A used car is often a better financial choice for many people, as it offers lower, more affordable monthly payments. In addition, many of the used cars are equipped with warranties and have been extensively checked and tested for problems before being sold.
Used Car Disadvantages
The biggest problem with purchasing a used car is that you often times inherit car problems. A used car may have been stolen and recovered, may have been neglected by its owner, or may have been mishandled. Unfortunately, it is nearly impossible to know about the car’s history. A used car warranty may protect certain components on the vehicle, but larger problems may not be covered under the warranty.
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