There’s nothing quite like a brand new car. It’s unspoiled inside and out - no dents, no places where the paint was patched up, it even smells new. Is a used car a better deal, or should you splurge and spend your money on a car brand new at your local car dealer? Each option has pros and cons.
The price is much nicer on a used car. In fact, a brand new car loses a large percentage of its value the minute it leaves the car dealer’s lot. On the second day you own a new car, it’s still new. I doesn’t have any scratches, it still smells new, and it has a lot of miles left. But if you were to try to sell it, it’s no longer a brand new car, and that difference translates into dollars. You might assume that the value of a car would fall slowly over its useful life, but that’s not how it works. It loses significantly more value during its first few months and years. Eventually, the value stabilizes and its value is determined solely by its condition - but it still has some value.
One of the largest drawbacks to buying a second-hand car is the unknown. Why did its last owner get rid of it? Does it break down a lot? Was it maintained properly? Was the suggested maintenance done in a timely manner? Has it experienced water damage or been involved in an accident? Luckily it’s much easier to determine the answer to these questions that it ever has been. Many used car dealers offer up a Carfax report, which tells you the car’s history. How many owners has it had? Has it been involved in any accidents? The information age has made it much easier to compile this information by tracing a car’s vin number.
A shorter useful life is another disadvantage to purchasing a used car. Repairs will be required earlier. The age of a previously owned car plays a big role in this factor. Some pre-owned cars are still new enough to be covered by the manufacturer’s warranty. In fact, many car dealerships sell ‘certified vehicles’. Certified vehicles have been inspected, had any necessary repairs and maintenance done and have been deemed to meet certain quality guidelines. You won’t have to worry about major repairs for a while if you buy a car that comes with a warranty. If a used car does not come with a warranty, the key is to have your mechanic look it over before you buy it. Compare the price tag to the condition. If you accept a car with some problems, you should get it for a lower price. There’s a limit, of course. A car that’s about to expire isn’t worth any money at all - except to the junkyard.
New cars are expensive - that’s the bad news. There are some benefits too. First, a car made today will run longer than a car built even a few years ago, because engineering is improving so quickly. And you may not be able to find a used car in the model you like if it has just been released. Infiniti’s G37 Convertible is a good example. If you can find a used one, it’s probably at a premium price for a used car. You might be better off just to buy it new.
Ultimately, buying new or used is an individual decision. The type of car you’re looking for and your purpose in buying it will probably determine which way you go. Whichever route you choose, do your homework and consider both options before you make your choice.