Comparing the Costs: Which It Financially Sensible to Buy- a New and Used Car?

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buying used or new cars

Buying a car or a truck will eventually make sense and be regarded as a smart investment when it ultimately manages to serve its purpose. But that aside, there has always been an unending debate between proponents of brand-new rides and the financially-savvy ones who prefer to save thousands and buy used ones. According to you, which is the best choice of car to buy?

Which Side Are You?

There’s nothing more glamorous than buying a brand-new car. Forget about the rounds and rounds car salespersons will take you, the whole feeling right after getting off the store is out of this world. You will haggle hard, go on a road test, vroom up that gear, take photos and feel like you belong to the same league as the rich and super-moneyed car collectors.

But much as the whole experience is enticing, experts always recommend that you take a cold, hard look at the amount you are planning to splash in exchange for your new ride. The National Automobile Dealers Association reveals that on average, a sane human will own 13 cars in a lifetime, each of them costing an estimated $30,000.

That might sound like a huge bargain, but it is the exact opposite. In fact, $130,000 is the total amount a budget smart car buyer would save if, instead of buying 13 new cars for $30,000, he were to opt for used ones. This difference is a sinister-sounding financial term referred to as depreciation.

What is Depreciation?

It is your right and indeed everyone’s expectation to see you drive off gleefully with that brand-new Nissan Juke, fresh from Kijijiautos.com or just any other top Canadian autos marketplace. But you should be worried that by merely vrooming off that car showroom, you newly purchased baby will have instantly dropped 20% off its purchase price. As if that’s nothing, clocking a year with your car will mean it will be over 30% off its original value because such is the damage depreciation does!

Maybe you are silently saying that “But driving a new vehicle is mesmerizing.” Well, that’s 100% right, though it is nearly the same experience as that of a person who just used $10,000 to buy a used car.

What to do: let go of the old used-car stigmas

Shun this widespread fallacy because most of today’s cars are superbly designed to clock over 100,000 miles before it demands any servicing. Also, maintenance makes sense amongst the current crop of motorists, and you will find an almost-new ride with its tires, and brake pads pristinely kept.

Benefits of used cars over new cars

Buying a used car is cheaper in the long run, there’s no doubt about it. The lower costs accumulate from:

  • Lower insurance costs
  • The more reasonable prices of renewing registry
  • Less stress too, after all, it is an old car.

Why buy new over a used car?

  • Shopping for a new car is more comfortable since each car is perfect.
  • New rides attract more financing options.
  • Also, buying a new ride comes with a sense of prestige, peace of mind and lucrative rebates.

Final thoughts: Everything boil down to you, the eager car shopper!

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