BUYING new OR A USED Car, IT’s A MATTER OR PERSPECTIVE

Buying new or used, that’s always been an emotional rollercoaster. I have done both but like any man we love our brand new toys. I am hoping to show you both perspectives and comparisons of what I have found on buying new versus old and hopefully I can help you make that final decision on that vehicle you are trying to buy.

Financial sense

As we all know new or used a car is not a good financial investment.  New vehicles loose a large portion of their value pretty much in the first if not second year. . Where buying used maybe the smarter choice, but not always if your stuck with a lemon.

New vehicle

Sniff, Sniff. Don’t you just love that new car smell? Isn’t it great! Nothing like a new car, zero kilometers(well almost), the plastic wrap on certain components on the vehicle, the new manual that you just love cracking open and reading it from cover to cover just to find out what this car offers. Just the freshness and knowing no one has used it. Then you see the price tag, Dohhh!

But that’s ok; you’re stuck in the aura of it all. You get trapped in buying a car which you will not fully own for at least 5 to 6 years depending how you finance it. Or even worse you pay it full out and you drive it off the lot and loose half its value. Bring it on!! That is true financial sense, Not…

Used vehicle

Hmm, I don’t know…. Used? Well maybe. Let analyze it. First it’s cheaper and way below sticker price compared to a new car. Now a two year old vehicle you can get for half the price at least! That’s for domestics but you can even get the import you always wanted at half the price or close to it. Secondly being a two or even three year old car/truck, it still has a warranty and most of the times its in great condition. The downside of purchasing a used car, firstly you may get a lemon, secondly not 100% sure what the vehicle has gone through.  But that’s the risk you take.

You need to research

This is why I suggest you really need to-do a lot of research on the specific car or truck you’re looking for. It doesn’t matter new or used, some models have specific years that are lemons or use cheap parts when they were first built. Pinpoint to two or three models you looking for and stick to them. Don’t overwhelm yourself. Also is a good idea buy from a dealer if you go used. You can use the slight of hand and push him to replace certain components that usually go like timing belts, water pumps, and things like that. You would be amazed what they will do to sell a used car let alone a new one. Plus some offer an extended warranty. And countless other types of 100 point type inspections. When you’re buying direct from a person you really not sure what you’re getting plus you can haggle the price but you can’t ask him for a warranty or part replacements. Normally it’s an AS IS situation, and you would get a much better price.

Recommendations

Now what I recommend is going used but not too used, say two maybe three years. At this point you will save thousands of dollars compared to buying new, and because they sit under 5 years you are getting a warranty. What is nice because you are getting used it’s easier and quicker to save that kind of money you need to buy out the completely. No loans, Yippy! Well if you do get one it won’t be that enormous compared to new..

Common sense

You need to keep in mind this is not a financial investment so even buying used you loosing money right off the bat. That’s why you don’t want to put in a lot of cash into something that is going to depreciate in matter of months. It just does not make sense.

Not trying to be a skeptic, but…

Please don’t get me wrong I love new cars I think they are great! But if you are going to owe up to your eyeballs for the next 5 years on something that looses its value in the first two years. Then you might as well go used this way you owe in two years instead of five. Now if you have a lot of money burning a hole in your pocket then by all means knock your socks off!

Listen I see a new car purchase as a trap. You buy this 50k car and pay it back in five maybe six years. You’re not even sure what the future holds for you in the next two years let alone five. I have seen it in Europe; most of them buy new and are unable to make the payments after the second or third year. Everything is on credit its quite saddening. These are good people who just don’t know how to manage there money and live day by day. Buy new only when you are sure can afford it.

As long as you have done your research on the vehicle and you’re not going in blind into the purchase then I can assure you will get a reliable and safe vehicle.