One of the biggest decisions people drivers looking to replace their car face is whether or not they should purchase a new model straight off the dealership lot or go with a used alternative that already has a few thousand kilometers on it but which is available at a significantly lower price.
While there is no one-size-fits-all solution to this problem, as everyone’s needs are different, there are a few general guidelines shoppers can follow to help them make the best decision for their budget and lifestyle.
If you want to ensure that you get a vehicle you can enjoy for years to come, here are three things you should keep in mind when deciding whether or not to buy new or used:
1. Personal Need
As with any other purchase, the most important thing to consider is personal need. If you are a contractor who needs a reliable heavy-duty truck with serious hauling capacity for your business, it makes a lot more sense to purchase a brand new vehicle from a top brand like Ford to get the job done.
If you’re simply looking for a compact car that your partner can use while you commute to work in the family’s main vehicle, on the other hand, a used car might make more sense.
2. Financing Package
Whether you’re considering new or used, the financing package will likely play a major role in your decision-making. There are generally more options available when it comes to financing a new vehicle, and if you purchase from a dealership like Colony Ford Lincoln that has an in-house finance team, getting a good payment deal can justify spending a little more on a new car that will last longer.
3. Re-sale Value
Another key consideration is re-sale value. If you purchase a car for $30,000 and sell it five years later for $12,000 and which needs only minimal repairs, you’ve essentially purchased the car for $18,000. If you buy a $15,000 car you are able to sell five years later for $4,000, on the other hand, you will have saved around $7,000, but it will likely have fewer features and require more repairs.
Either way, the re-sale value is essential to calculating the actual cost of a vehicle. Buying a new car may be a bigger up-front investment, but it is possible to recoup some of it down the road. Conversely, a used car requires less of an immediate investment, but will likely not come with the latest safety features and gadgets.
After a house, a car is probably one of the most significant purchases most people will make in their life. In most of North America, a car is essential to navigating the world safely and efficiently, and making sure that one has access to a reliable, durable, affordable vehicle is imperative for everything from getting to work to picking up groceries.
There are plenty of reasons to purchase either a new or used vehicle, and in the end your decision will likely come down to your own particular balance of pros and cons. But considering your personal needs, the financing package, and the car’s resale value can help you make an informed decision.
Courtesy Of JDBNOW