Looking to buy a car?
With the vast majority of Americans driving one, it’s understandable you want to get your own. However, it need not be brand-new. Whether it’s a new or second-hand car, you’ll benefit from the convenience.
So, how do you know the difference between the two? Read on and find out:
1. Vehicle History
Sometimes, a vehicle’s interior and exterior look spotless and immaculate. It doesn’t necessarily mean that it’s a new car. In some cases, the vehicle can have a rough past.
Lots of reputable websites can give you robust history reports about your desired vehicle. Most will detail the odometer check, title information, and prior damage.
In most cases, it might be the only thing you need to determine the vehicle’s newness.
2. Warranty
It takes extra effort, but it’s always better to look at the fine print. It’s a definite determinant whether the car is new. Some used vehicles have the “Certified Used Car” label.
The label means that the vehicle’s manufacturer warranty covers it. However, most will have a third-party warranty. Worse, they have no warranty, especially if they’re over four years old.
3. Price Tag
This identifier isn’t as effective as the others since most dealers will know the average price of new vehicles. Regardless, if they’re selling a “new” vehicle at a much lower cost, it’s often a red flag. Check the vehicle’s price online and determine whether the average price is right.
4. Mileage
Modern cars will often go over 100,000 miles without suffering from mechanical difficulties. It’s another easy method of determining a car’s newness. For practicality’s sake, vehicles with low mileage but newer models are almost as good as new.
5. Model
Depending on the model of the car, the chances of its newness fluctuates. Older car models are often second-hand since most manufacturers already stopped producing them. Even if it’s within the same car line, an older model’s new cars will eventually disappear from the market.
Ask the seller the car’s model and make. Ensure that they include the car’s year of manufacturing. It will give you a better idea of the car’s current state.
New or Second-Hand Car: Comparisons
Now you know how to identify whether it’s a new or used car, you can compare the two. In this section, you’ll learn the advantages when you buy a new car or used car. You can also learn about Certified Pre-Owned cars since it’s also a viable option.
Advantages of Buying New Cars
The benefits of a new car search are often tangible. It’s why a lot of people invest in them despite new car prices.
1. No History
When you buy a new car, you need not worry about the past. It means not worrying about previous owners and how they treated the vehicle. You need not concern yourself about accidents and neglect.
New cars will have no miles on their odometer. It often comes straight from the factory. The brakes and tires are likewise fresh.
2. Easier to Buy
Wondering about the experience of how to buy a new car? In general, you need not research their history or inspect them before buying. It requires no wait time since the dealership will complete the paperwork for you.
It won’t require a lot of effort for you to get your desired car model. The dealership can swap their cars with other dealers or order from factories. It allows you to get the right color and trim level for your dream car.
3. New Car Deals
Car manufacturers will often offer special incentives to buyers. It often happens when they have slow-moving models or vehicles with updated versions. Cashback deals and special interest rates for financing can save lots of dollars.
Cashback deals make the car’s price lower. Financing incentives decrease or get rid of interest over the lifespan of the loan. It’s often exclusive for people with immaculate credit scores.
Advantages of Buying Used Cars
If you’re not fond of high prices, a used car is perfect. The used car values aren’t the only reason for you to get one. Here are some other benefits:
1. Less Expensive in Lots of Ways
Buying a used car saves money upfront. However, it also keeps you from spending a lot on auto insurance and tax. The interest rate is higher for used cars, but the total interest is lower because of low used car prices.
With this, it’s easier to fit into your budget every month. You’ll also avoid taking out loans that last over half a decade. It’s a common but horrible method of buying new cars.
2. No Large Depreciation Hit
After driving a new car off the dealership, the value will drop. The majority of a car’s value decreases during the first few years of ownership. After that, the rate of depreciation drops a lot.
Buying a used car means avoiding wear and tear. You’re letting the first owner shoulder the initial depreciation hit. It leads you to buy a lower-priced car with a lesser depreciation rate.
Depreciation is one of the biggest costs of buying a new car. However, you’re unlikely to feel its effects until you sell the car. Once you do, you’ll learn about the severity of the price drop.
3. Less Financial Strains When Financing
An underwater loan means owing more than your vehicle’s worth. Regardless of the term, it’s devastating when your car suffers from undesirable events. It matters not whether someone steals it or you get into an accident.
You’ll continue paying the loan even when you don’t have it anymore. It’s not as big of a deal when paying for a used car. The cheaper price makes it almost impossible to go underwater.
Get a Car Today
Whether it’s new or second-hand, you must be smart about your purchasing decisions. Check the used car parts and determine whether they’re serviceable enough. Otherwise, look for another provider.
Do you want to check a used vehicle’s history? Reach out to us and let's talk. We can help with a vehicle history report.
