Buying a car is a major financial decision. Making a choice between a new and used car may be difficult. However, both these options entail pros and cons.
Benefits of buying a new car
- You may include the accessories as per your preferences. In addition, you may customize the vehicle according to your choice.
- Advanced technology has improved fuel efficiency with greater power. Furthermore, the cars give out lower emissions making them environment friendly.
- Most dealers offer free service and maintenance for a certain period on new cars.
Disadvantages of purchasing a new car
- Compared to a used car, the price of new vehicles is significantly higher.
- New cars depreciate quicker, which means the value is reduced by 20% to 40% as soon as you drive it out of the showroom.
- Generally, the insurance premium on new vehicles is higher than used cars.
Pros of opting for a used car
- Since the price of a pre-owned vehicle is lower, you may be able to buy an advanced model within your budget. In addition, finance required will be less, which helps you manage your cash flows without any difficulties.
- The value of new cars depreciates quickly especially during the first year. In comparison, pre-owned vehicles do not depreciate at a high rate.
- The premium on used car insurance is lower than that for new car insurance. This helps you save a significant amount of money.
The purchase price of a pre-owned vehicle may be lower, thereby reducing the amount you need to borrow as used car loan. However, the maintenance cost of a second-hand car is higher, which may increase your overall cost of owning the car.
The used car market has seen lots of changes in the last few years. There has been an increase in demand for pre-owned vehicles. As a result, lenders offer attractive used car loan interest rates, which make it affordable for you to buy your dream vehicle. Several certified pre-owned vehicle dealers offer a wide choice that ensures you find one as per your choice.
Click here to apply for a used car loan.