Hi, hello, how are you? Thank you for stopping by here today! I’d like to invite you to become a Patreon of the blog! Today I’m exploring several considerations between buying a new or used car. The cost of everything has increased drastically over the last few years and it can be tricky to know which considerations between buying a new or used car should be had. If you’re new here and interested in reading a few other finance-related posts here are a few you’ll enjoy
- 7 Things To Consider Before You Sign The Lease
- First-Time Home-Buyers Dictionary: All The Words You Need To Know When You’re A First-Time Home-Buyer
- 5 Hidden Expenses To Include In Your Budget
Considerations Between Buying A New or Used Car
There are many considerations to ponder before buying your next vehicle. Understanding these points can help to ensure you choose the best vehicle for your needs.
1. Decide what kind of car will suit your needs.
This can be hard. There are a lot of cars out there to choose from. A few things to consider are the gas mileage, safety features, and what the main use of the vehicle will be – hauling, commuting camping, etc. This will help to make sure you choose a car that will be helpful for a long amount of time. You don’t want to buy a small car and then try to stuff all of your camping/travel gear in it and maybe not have space.
2. Be aware of your credit.
Credit might be what you need to purchase a new or used car and if you have good/strong credit you can negotiate a lower interest rate. If you’re credit score is too low then you might need to work on it before you make the purchase. A used car is typically cheaper than a new car, so if you don’t have good credit, then a used car might be the best option if you’re on a time frame and can’t wait to rebuild your credit.
3. Planning on trading your current vehicle in? Don’t wait for the sales person to tell you the value of your current car. Do your own research.
Knowing your vehicles value can save you a ton of time. It might be more beneficial to sell it yourself prior to buying your new one. There are several calculators available to assist with buying a car, and being able to estimate your payments. Being aware of your vehicles value before you talk to a sales person can give you more leverage with the trade in value. Knowing what it’s worth might bring a confidence to you to negotiate the best deal for yourself.
4. Determine what you can afford.
Take a look at your budget, potential payment schedule and see if it fits for you long term. When you purchase a new car on a loan its’ likely going to be for an extended amount of time. It’s important to take note of that. Ensure you’ll be able to make the payments over the entity of the term before you make the final considerations between buying a new or used car.
5. Make a PRO’s & CON’s list to make the considerations between buying a new or used car.
PRO’s – A NEW CAR
- The new car comes without any history/car troubles.
- New cars have all the latest features and gadgets.
- New cars’ have great warrantys.
CON’s – A NEW CAR
- Buying a new car, especially with all the new features, is expensive.
- New cars need to be purchased at dealerships, so there are less options of where to buy,
- You need to pay sales tax.
- Insurance costs more on a new car.
6. Uncover the car’s history with your considerations between buying a new or used car.
Before you purchase a used car make sure you know everything you can about the cars’ history. Have the car inspected by a qualified mechanic before you make the purchase. A qualified mechanic will be able to spot any potential, upcoming issues you might have. They don’t catch everything but they can see a lot.
7. Consider the cost of ownership.
The cost of ownership includes more than just the cost of the vehicle. Consider the depreciation, maintenance and repairs, fuel and insurance. This is an important factor when thinking of considerations between buying a new or used car. You don’t want to buy something that you can’t comfortably afford in the long run.
When you’re making considerations between buying a new or used car it’s important to think about the reliability factor of the vehicle. Is the vehicle going to start? Will it run well? Can you count on it to get you wherever you need to go?
Buying a car is a big purchase. It’s important to factor in all the considerations when buying a new or used car. What is your preference? Buying a new car or used?
Love Always, natasha