The hardest thing when buying a car is deciding whether you should go for a new or used model. A new model has all the latest technology and safety features. On the other hand, a used car is much cheaper than a new one.

How do you decide what to go for? A classic pros and cons list should help you figure it out.

Pros of Buying a New Car

• When buying a new car, you don’t have to worry about how it was previously treated. It’s fresh off the lot with no wear and tear. This is the greatest advantage of a new car.
• A new car will have a good record of reliability. It is covered by a 3 – 5 year warranty from the dealership. If anything goes wrong, repairs or recall won’t be a problem.
• A new car is more fuel efficient than a used one, and releases less toxic gases into the atmosphere.
• It will also have the latest safety features such as front and lateral airbags, traction control, anti-lock brakes, child seat retainers, Electronic Stability Control and many more.

Cons of Buying a New Car

• A new car is more expensive than a used model. It’s also harder to negotiate its price with the dealer.
• A new car loses about 45% of its value in the first 3 years. You buy a new car at retail price, but as soon as you drive it off the lot, its value is reduced to wholesale price. For example, the retail value of a new 2007 Ford Focus is $14,335. But if you tried to sell it back to the dealer, you would only get $11,995 back. You will have paid $2,340 just for taking the car off the lot for 5 minutes.
• Since the replacement value of a new car is higher, it has higher insurance rates. Monthly insurance expenses can add up quickly.
• A new car won’t stay new for long. The excitement of having a new car will be gone long before the scratches and dents appear.

Pros of Buying a Used Car

• The best advantage of buying a used car is that you can afford the best your money can buy. A late-model used car will be less than half the price of a new one.
• A certified pre-owned (CPO) car comes with all the faulty parts repaired and a warranty as well. Often, the balance of the factory warranty is also added on.
• Most cars can go 100,000 miles without many difficulties. So a low-mileage late-model used car with 35,000 on the odometer can still give you 65,000 miles of problem-free driving.

Cons of Buying a Used Car

• Buying a used car means worrying about how it was treated by its previous owner. The car may turn out to have major faults and lead to a loss.
• A maintenance check is essential when buying a used car. A certified dealership will usually have their mechanic inspect the car. If not, then you will have to pay a mechanic to perform the maintenance check on your behalf.
• Also, a used car will require maintenance and repairs sooner than a new car. New tires, new breaks, radiator and transmission flushes will be needed.

If you’re buying a used car, go for a from an authorized dealership.

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