Why Used Cars are Better than New Cars? - Used Cars Vs New Car?

When you get confused whether to buy a used car or a new one, it is better to compare the pros and cons of both and then decide. Buying a used or new car is at your sole discretion but sometimes it happens that you want to opt for car loan to buy a car and feel that considerable less amount of loan is required to buy a used car in comparison with that of a new car. Smaller Car loan will result into paying off less amount of interest and, therefore, because your finance amount will probably be higher if you buy a new car, you'll have to include higher interest payments into the cost of a new car.

There are many reasons why people should buy a used car than a new. Let's check following 9 reasons why used cars are better than new cars?

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(1) Less Costly

Used car is half the rate of a new car that saves money of the buyer. A used car will cost less in outright purchase price, sales tax, and license fees than a new car. Buying a new car is definitely more expensive than buying a used one.

It is known to be the most cost effective way to own the car.

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(2) Less Depreciation

Value of new car drops immediately in the early years of ownership due to depreciation so buying a used car is the best way to avoid depreciation. You may avoid a huge depreciation hit by buying a used car. It will help you save money on depreciation.

(3) Less Insurance Cost

Insurance cost depends upon age of the car. Value of car goes on decreasing with its age. As used car has less value than a new car, the cost of insurance is very less as compared to the newer one.

(4) Comes along with Accessories

If you buy an old car, you will get all accessories fitted in it. In that way you can save on expenses of purchasing accessories for the car.

(5) Immediate Delivery

When you are buying a used car, you can get immediate delivery of that car which you may not get while buying a new car.

(6) Car Reviews

With purchase of a used car, you get to know about the car reviews before you buy it. On the basis of those reviews, you can make a decision whether to buy the car or not.

(7) History

Used cars have a history. Not just the individual vehicle, but the whole production run.

(8) Lower Liabilities

To buy a used car, you need to take less amount of loan so you will have less liabilities.

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(9) More Bargaining Power

When there are very chances of bargaining on a new car, you have much more bargaining power when you buy a used car. You can bargain on various factors including old accessories, mileage, etc.

Our Remarks

Whether you are buying used car or new one, you should think twice before spending your hard earned money. Further, you must not forget to do pre-purchase inspections before buying any car. If you go for buying slightly used car instead of a new one then you can save big bucks. When you buy a used car that is only around 2 years old and has under 25,000 k.m. run, it can help you save more on your buy without sacrificing the quality.

Share This : Anupama is a Co-Founder of CodeForBanks.com. She is an MBA (Finance) and Chartered Financial Analyst (CFA). She also carries a Fellowship degree in Life Insurance Sector and is a Master of Computer Application (MCA). She is an expert in Finance Field with an experience of over 18 years on different managerial positions in finance industry including Stock Market, Depository and Mutual Fund Sectors. Apart from that she has remained for few years in the field of marketing as well. Her suggestions and advice for investments have been very useful to many people.
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