Are you planning to buy a car, but have a tight budget for it right now? Well, the most common choices you have in this scenario are either buying a used car or a new cheap, reliable car.
But, choosing one of these becomes a matter of huge conflict and confusion for some individuals. It is natural to have doubts about both cases, “What if the used car requires costly repairs?”, “What if the new cheap car doesn’t include all the features you wanted in your car?” It is understandable to be filled with all these what-ifs while making such decisions. Do not forget that “The best car is the one that fits your needs, whether new or used.”
This article compares both these options on different parameters, so if you are also torn between the two alternatives, read this article till the end to gain clarity about it and make an informed decision. Also, learn about the Legal Aspects of a Severe Car Crash by reading this article.
Let’s dive in!
Cost
It is no rocket science that used cars are cheaper than new ones, but will they be in acceptable condition? Well, it depends, if you thoroughly search through the markets you might get a hold of a steal deal and find a decent car at low prices.
A cheaper new car may not have the best features available in it, that you can find in used cars at a lower rate. If you are okay with the limited features being provided in the new car, you can definitely go for it, but on the parameters of cost, used cars are preferable.
Depreciation
You must be aware that a car loses its value over time due to wear and tear, age, and mileage and that is car depreciation. There is no set rate of depreciation, but new cars depreciate at a steep rate in their initial years. Older cars may still depreciate, but generally at a slower rate.
New cars come with a fresh warranty and can maintain value well if they are popular models, but they typically lose 20-30% of their value within the first year, and depreciation continues at a significant rate for the first few years.
PRO TIPAlways run a vehicle history report before buying a used car. A vehicle history report tells you about prior accidents, the number of previous owners, and other problems with the car. Checking the history of the car can save you from surprise expenses.
Maintenance
You can find reliable used cars with lower upfront maintenance costs if it was maintained well by their previous owner. But, in some cases, older vehicles may require more repairs since maintenance history remains unknown while purchasing a used vehicle.
On the other hand, new vehicles usually come with a comprehensive warranty, covering most repairs for several years, which can result in lower maintenance costs. After the warranty expires, maintenance can be expensive, especially if repairs are needed for advanced technology features.
Warranties
Some used cars may still be under their original manufacturer’s warranty or may have extended warranties available. But for some used cars, warranty coverage can be limited, and many used cars have expired warranties, leaving you responsible for repairs.
New vehicles typically come with a manufacturer’s warranty that covers major repairs for 3–5 years or a specific number of miles. Warranties can vary significantly between manufacturers, and some may not cover wear-and-tear items.
Long-Term Value
A few well-maintained used cars can surprise you and can hold their value reasonably well, especially if you choose a reliable brand. For example, a Mazda CX-5 is known for its durability and often retains its value effectively over time.
On the parameter of long-term value, new cars take the cake, they offer better longevity due to modern engineering and technology, which can mean fewer issues in the long run.
Remember that the initial investment is higher, and while they may retain value better initially, their depreciation rate is steep.
DO YOU KNOW?An increasing number of people are buying used cars these days, leading to a surge in the used car market. The used car market size is expected to grow from USD 1.77 trillion in 2024 to USD 3.05 billion in 2033.
Drive Smart, Choose Cheap Reliable Cars for Budget Bliss
There are many factors you need to take into account while choosing between cheap reliable cars and used ones, such as your spending limit, the length of time you intend to retain the automobile, and your comfort level with possible repairs.
Both the options have their upsides and downsides, as we discussed in the article. Used cars can offer significant savings and value, but new cars come with peace of mind and modern features. It’s essential to weigh these factors based on your personal situation and opinions to make the best choice for the best car brands.
