An individual may be in a dilemma whether to buy a new or used car. There are a number of benefits associated with buying a used car. For starters, the individual gets to pay less for the vehicle as compared to a new one. Research indicates that an individual buying a new car may pay up to $ 25,000 as compared to $ 8,000 for an old car. Many financial institutions require an individual to pay a 10% down payment for a new car loan. However, individuals who prefer to pay more than this 10% may pay less in monthly installments. Another advantage associated with buying a used car is the certification program. Certificate programs are synonymous with a number of luxury bands e.g. Mercedes and Lexus.
However, this program is increasingly being taken up by other car manufacturers .A certification program has a number of benefits. For starts, only low mileage cars are incorporated in to these programs. Moreover, theses cars do not have any damage history. Secondly, these cars undergo rigorous inspection processes before obtaining certifications. Thirdly, these cars are covered by a warranty. Moreover, many manufactures provide special financing for these programs. The third advantage associated with buying used cars is the fact that a person avoids depreciation. A new car loses about 30% of its value within 2 years of being purchased.
On the flipside, there are numerous advantages of buying a new car. An individual has freedom of choice. When buying a new vehicle, the individual can choose whether to buy a truck or car according to his or her size and price class. In addition to that, the individual can test drive the car to find the most suitable one. The individual also has the opportunity to fix various types of features on his or her car. Secondly, new cars have high resale values as compared top old cars.
An individual buying a new car has aces to better finance rates .While buying a used car may be cheaper, an individual is bound to pay higher interest rates as compared to buying a new one. Besides that, a new car has many new features and technologies as compared to an old car. It so follows that the individual is bound to get his or her money’s worth. Lastly, the person has access to free roadside assistance, which is a component of the vehicle’s comprehensive warranty.