Like this article? PLEASE +1 it!

New or used car?

Guest post by: Nick Julian

Article Overview: The choice between a new or used car, here we're laying down the perks and some of the disadvantages.

Free Download - Purchasing a Truck By Nick Julian

New or used car?

It's shiny, modern, fitted with all the latest accessories, and will be the envy of friends and neighbours for a time, but in time all this wears off and rather quickly. It is worth considering the advantages and disadvantages carefully before deciding to buy a new car.

New cars depreciate in value as soon as you drive them out of the car yard. In the first 3 years of owning a brand ‘new' car it will drop about 40% in value. Where is if you purchased a ‘used' car and shopped around for a good deal, chances are you wouldn't lose nearly as much.

Another major benefit is that with new cars you have the new car warranty; this means if you have any problems with the car's engine or interior it's likely to be fixed for free by the manufacturer. If you plan on financing a new car the interest rates will be lower compared to a used car, this is because in the off chance you can't make the repayments they will reposes the car it will still be worth a decent sum in 5 years' time.

When you purchase a used car, the previous owner has pretty much already paid the steepest years of depreciation costs. You'll be benefiting from a lower purchase cost, cheaper registration, and reduced insurance costs. If you purchase privately you will also save on dealer add-on. Another great place to look around is car repo auctions, sometimes you can pick up a great deal.

Major risks in buying a used car include the costs of unwarranted repairs, and the chance of a major mechanical failure. Also the costs of maintenance increases as the car ages.

New cars are generally safer than older cars, and often have wanted features that you need to fit to a used car at extra cost.

Some buyers enjoy major savings and most of the benefits a new car has to offer by just opting for a barely used car, these are also known as ‘demo' cars. These cars have had minimal use and are usually in brand new condition, they may have been used for displays etc. They will be sold at heavily discounted prices due to the few km's they will have.

A 'certified pre-owned' vehicle can also bridge the gap between new and used. Although pre-loved, cars sold under this program are subject to rigorous inspection, and are usually covered by a manufacturer warranty.

The decision will eventually come down to cost. If you do chose a used car, make sure you get a mechanic to have a thorough look for mechanical defaults. Buying from a licensed dealer may save you time and effort, but as we mentioned before this time and effort comes at a cost.

Related Articles

Home > Personal-Finance > Nick Julian > New or used car > Google +

Article Tags: broker finance car loan insurance dealer new used

About the Author: Nick Julian
RSS for Nick's articles - Visit Nick's website

As my website suggests I deal in personal finance within the Australia market place.Brokers ink finance was established in 2002 and achieved numerious acolades since then, we are continuing to grow the business now and extending into the asset finance market.
http://www.brokersinkfinance.com.au

Click here to visit Nick's website

More from Nick Julian