Every family thinks of purchasing a car for their leisure and also a requirement for some. But, before deciding on the purchasing of a car, there are many questions that are involved in dealing with the purchase of a car.
Most important decision one has to make is whether you want to purchase a brand new car or a second-hand or used car. There are advantages and disadvantages on both sides for a car purchase. Let us look at the advantages and disadvantages of purchasing a second – hand or used car and also compare the points with the purchase of the new car.
• The cost of purchasing a used car will be less expensive anytime compared to the purchase of a new car. If you decide on purchasing a used car, then you could also think of purchasing a better and higher model which you could not think even if you want to buy a new car.
• The value of a new car starts depreciating as soon as one drives the car from the showroom/ dealer and continues losing it with passing days and usage. The steepest decline of almost 40% occurs in the very first year of purchase and it might reach nearly 70% by the third year. So, this is a benefit for one who wishes to purchase a second-hand car, the car has already lost some of its depreciation and so it is a kind of asset for you. Although the depreciation will still continue, but the rate of depreciation will be slow.
• The rates of the insurance of the car will also be less for used cars compared to the new car and thus, the used cars will be less expensive. The terms of the loan for the used car have shorter terms for car loan compared to buying a new car. Also, you will save your money in the registration process of the used car.
• For purchasing a second-hand car, you have an option of purchasing the car directly from the owner or from a dealer. If you decide to purchase the used car from a pre –owned vehicle certified dealer, then you might get different choices on models and features and other details as well as better options for financing your purchase. Another advantage of purchasing it through a dealer is that you can bring your car at the dealer’s service center for any maintenance and repairs. However, if you decide to buy the used car directly from the owner, the cost of purchase will be definitely less than the amount you will pay to the dealer and also can waive off the extra fees that you might have to pay for purchasing the car from a certified dealer of second-har car sale.
• The purchase of a used car with loan facility will have a higher rate of interest compared to the purchase of a new car. Another, shortcoming for the purchase of a used car is that the finance companies don’t provide loans for cars which is used for more than seven years.
• The second – hand car purchased directly through the owner will carry no warranty. The certified dealer for pre-owned cars may or may not provide you with a warranty is the major drawback for purchasing a used car.
• Further, you don’t have that authority to order for features and options you require in the used car who wish to purchase. But, you might get more features already available in the car which will definitely be less expensive compared to the purchase of a new car.
• The second-hand car will definitely have a higher cost of maintenance. In order to reduce the maintenance cost, you need to carefully review all the related documentation of the car, properly inspect the car especially during daylight, do a test-drive of the car especially on the highway, also you can take a mechanic with you to inspect the car before purchasing it.
• Another disadvantage of a used car is that you might be unaware about the maintenance and repairs made by the owner of the car as the cost of the aftermarket parts may affect the proper functioning of the vehicle and may create problems for you.