Should I Buy a New Car or a Used Car?
New or used car? It all depends on your situation. So much depends on your situation – income, habits, emotions – that one size certainly does not fit all. Discover the two types of people best suited for used cars, and the four types of people who really should be buying a used car.
The choice between new car and used car seems simple enough:
A new car costs more and has less problems.
A used car costs less and take more…um…patience.
Actually, there is more to it than that. Here is how to recognize whether you should be buying new or used.
When shopping for %LINK1%, there are six types of people we profile here. You might be one of them. If you see yourself here, you’ll know what to do.
2 People Who Should Buy New Cars
The Gadget Geek: For you, don’t even think about finances. All that counts is that you have the most up-to-date gizmos and gadgets. And all you really want out of a car is to have the latest model (if it actually gets you somewhere, that’s a bonus).
The Savvy Businessman: You ask about write-offs before making any decision- assuming your company’s bottom line is in the black. When you choose a second-hand car from somebody else you can only write off a small percentage of the money you pay. Most Dealerships will lease only brand new vehicles. As a result it might make sense to lease a brand new vehicle, so that the net cost of ownership is substantially reduced. That is just good business.
While these people buy up all the new cars, there are others who also need to%LINK2%. Now it’s time to take a peek at the natural market for a second-hand vehicle.
Four for Second-hand Cars
The DIY Guy: Usually he is surrounded by partially finished projects and spare parts from those projects that were either finished or never will be. His vehicle can be loaded with those very bits and pieces, lugging stuff in the back seat and trunk. A brand-new vehicle will get all scratched up in a hurry. For these individuals/For people like this getting a used car is gives you much more freedom and peace of mind , because nobody feels as bad about scratching up an old car.
The 20-Something: Usually money doesn’t come easy. Therefore, the money saved by buying used can sometimes be the difference between walking or driving. Don’t forget that most newcomers to the work force will find financing a current year model is a non-starter Buying second hand is usually more practical for many young drivers.
Over-the-hill How well you did in your life will determine which avenue is best to take. If you did great in the stock market and want to splurge, going for that brand new Bentley might be the ticket. That is if money is no object. However if you are a pensioner and living month to month a good used car may do the trick. You’ll save thousands in depreciation the minute you drive that new car off the lot.
The Free Spirit: Maybe you don’t want to be tied down to car payments on a new vehicle and would like to travel the world without a care. Buying a debt-free second-hand car, 100% down, would leave you free to do as you please, go where you please, be whom you please – without feeling tied down to a loan repayment schedule and a maintenance schedule of a new car…and still have a car at hand to help drive that freedom (pun intended).
Whichever of these folks best resembles your situation, you should always do your research. There are many websites that will help you along the way to purchasing that great new or used car. There are many people out there trying to sell their car. In fact, you’ll probably want to %LINK3%, too, in order to trade up for a new one.
Resources:
David Leonhardt is an Ottawa-area writer. This article about used and new cars was written for MonsterAuto.ca, a great place to buy your used car online.
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