The battle of the two greats, functionality over bragging rights, the new or the used, the sleek or the practical. Depending on your opinion, you might be led to believe that one is better than the other. The reality is that – it depends. Based on how you value your car and how you use it, you’re better off choosing one or the other. If you need a little bit of convincing before you decide on a side, here are some pros and cons of the two options.
Used cars save you the ‘extra fees’
Most car dealers need to convince their buyers to avail of extra charges such as rust-proofing, shipping charges, and the ever-so-vague dealer’s fee. Some of these charges do have their checks and balances as it does require capital for a manufacturer to ship out a product, especially if it’s crossing states. But the rest of the fees can be attributed to service costs by the dealership which can range depending on their handling of the negotiation.
If you’re someone who’s looking to get away with the unnecessary fees on your car that you can make do without, then maybe you are best fitted to purchasing a second-hand vehicle. You can look through car dealerships that prioritize selling used cars in Layton Utah or closer to your home to save on your scouting expenses.
Dealing with depreciation
If you’re someone who values the ‘new car smell’ a lot, then you might not give too much importance to its depreciation cost. A brand-new car’s value can drop just by driving it back to your home. The long-term value of modern vehicles can drop down to almost half its price in only a few years.
A study by CNW Marketing Research compared the price of a car in 2008 and its resulting price in 2011. From $25,000, the price plummeted to just $13,000 at best. If you’re looking for a long-term investment, you won’t lose more regarding resale if you plan on reselling the second-hand car that you’ve just bought. You will have an easier time negotiating a sale price close to when you bought it compared to a brand-new vehicle that you’ve barely touched.
The financial upside
One of the biggest reasons to buy a second-hand vehicle compared to a brand-new vehicle is the long-term investment. We’re not talking about the investment you have regarding the resale of the car as we’ve discussed above, we’re talking about the rest of your living expenses. First-time car buyers often don’t do the math right and forget that they have other costs that they have to cover such as groceries, electricity bills, mortgage, etc. which can be affected by how much you reduce your savings through your car payments. Thinking of practicality will allow you to invest in the long-run while still being able to enjoy the benefit of having your ownvehicle.