When buying a car, you have two options — buying a new one at a higher price or a pre-owned model at a relatively low price. Both types have advantages and disadvantages, making it hard to decide the exact type to purchase.
Experts from Sunset Cadillac of Bradenton, a leading dealership, have scrutinized the merits and demerits of buying a new or used car. Read along to decide the type of vehicle that fits your preferences better.
What to Know About New Cars
A new car is one that has never been used for personal or commercial purposes. The vehicle is in its original condition, and the buyer is the first person to own and use it. With a clean history of ownership, buying a new car comes with multiple benefits, including:
Best Running Condition
Since they are completely unused, the exterior, interior, transmission system, engine, suspension system, and wheels of new cars are in the best working condition. Such cars will serve you long before you start dealing with expensive repairs and part replacements. Furthermore, a new car offers the best performance, as the manufacturer intended.
Generous Manufacturer Warranty
All new cars come with a warranty covering you against defects that might occur as a result of manufacturing blemishes. In case of a repair or part replacement, the manufacturer replaces or repairs the faulty parts without you paying a penny. The warranty covers you up to a certain mileage — usually three to five years, up to a mileage of 60,000.
Advanced and Modern Technology
New car models come with newer technologies not available in older models. For instance, new car models have super comfy interiors, higher engine power, advanced climate control, groundbreaking driver assist technology, powerful entertainment systems, and enhanced safety. Driving new cars is smooth, comfortable, convenient, safer, and more enjoyable.
Demerits of New Cars
Many new cars, especially new model releases, come at a higher price than used ones. Sometimes, you would even need car financing to afford one or save for a little bit longer before you get back to a dealership for that new, advanced car model.
In addition to the prohibitive prices, a couple of other demerits are associated with buying new cars. They include:
Higher Insurance Premiums
New cars attract higher insurance premiums because they have a higher value, and repair costs are unusually high. New cars also attract high premiums as they are prone to theft. Considering the high prices and insurance premiums, owning a good new car would need excellent financial preparedness.
New Cars Depreciate Quickly
The value of new cars starts reducing immediately after you buy. Their value reduces by as much as 20 percent in the first year. By the end of five years, your new car would cost half of what you paid to get it. That means you lose a significant amount if you are one of those people who change cars after a short while.
All About Used Cars
Pre Owned vehicles are cheaper alternatives to new vehicles. That is because the cars have depreciated significantly by the time you are purchasing. You can even get your dream used car with no or little financing. Apart from the low price, purchasing a used car is an excellent choice owing to:
They Attract Lower Insurance Premiums
Typically, insurance firms use a car's current market value to determine insurance premiums. That is why expensive car models attract high insurance premiums while low-valued cars have friendlier insurance premiums. Therefore, since used cars have a low market value, you will likely pay lower insurance premiums than someone with a new car.
Used Cars Have Already Depreciated
Many used cars have already depreciated to their lowest level. That means buying them gives you the best deal possible, especially if you intend to resale. The chances are you can sell it at the amount you bought it or at a slightly lower price so long as you give it the best service during ownership.
Used Cars Can Have a Warranty
Many drivers think that used cars have no warranty to take care of expensive repairs that happen shortly after purchase. However, that is not always the case. Used cars bought from reputable car dealerships have an extended car warranty to take care of damages and labor costs of specific parts within a specified period.
Furthermore, some vehicles have an active manufacturer warranty since they are yet to deplete the specified mileage or age.
Demerits of Pre-Owned Cars
Purchasing second-hand cars receive a bad rap due to one major factor— they have been used or abused, exposing you to unnecessary repair or replacement costs. Sometimes, the cost of repairs can surpass the amount you saved buying a used car instead of a new model.
In addition to costly repairs, buying a second-hand car comes with other downsides, such as:
Reduced Performance
Many used cars have undergone significant wear and tear, and some of their original parts have been swapped with cheap aftermarket ones. Thus, buying them means you won't enjoy the top performance you could have gotten from a brand new, unblemished car model.
Reduced Comfort and Safety
If you go for reduced older car models, chances are you miss out on some advanced technologies that make driving comfortable, enjoyable, easy, and safe. Nonetheless, some used cars offer reasonable comfort and safety, despite their age.
New vs. Pre-owned: Which is the Best?
The decision of buying a new or preowned car depends on your preferences. New cars offer years of service and have plenty of features to enable you to enjoy utmost comfort, safety, and driving convenience. They are great for owners who can afford the high purchase prices or manage to service car financing without disrupting their financial health.
Contrarily, pre-owned cars in good working condition aren't a bad investment. You get your favorite car at a fraction of what you could have spent buying a brand-new model. Moreover, used cars attract lower insurance rates, and their value reduces at a slower rate. However, you must inspect the used car thoroughly or buy from a reputable Bradenton car dealershipto avoid a problematic unit.
Learn More about Used and New Cars from Sunset Cadillac of Bradenton
Sunset Cadillac of Bradenton is the leading dealership for certified pre-owned, pre-owned, and new Cadillac cars. On our inventory, we have all models, including CT5 sedans, XT5 SUVs, Escalade SUVs, and more.
Our dealership is full of Cadillac experts who help customers make a choice that fits their budget and specific preferences. Don't hesitate to call us at 941-751-6886 or visit our dealership at 4780 14th St. Monday - Saturday.
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