Buying Cars: To Buy New or Used?

The decision of whether to buy a new car or a used car mostly boils down to the question of budget. While there are a number of advantages buying a car right out the box, there are equally as many for buying a pre-owned car from a reputable car dealer.

An industry under pressure

The fact that both the new and used car markets are under enormous pressure as a result of the recession worldwide is actually good news for the consumer. With increasing repossessions and less buying power, there is literally a flood of vehicular stock on factory and dealership floors, leading to more astute pricing by the industry and a burgeoning array of choice for the prospective buyer. Manufacturers are falling over one another to lure the ever-dwindling supply of consumers to their brands with money-back offers, free DVD and SatNav installations and other wallet-saving incentives.

Budgetary constraints – buy pre-owned from a dealership

Used car prices are also enormously competitive and car dealers are prepared to negotiate even further with the promise of a sale. One over-riding factor that cannot be ignored if budgetary constraints are being adhered to is the fact that it is possible to buy a 3-4 year-old family sedan with all the gizmos and gadgets for less than half the price of a mid-range new car.

Obviously the risk involved in buying a used car is always significantly higher than that of a brand spanking new model, as one can never be sure the previous owner drove and maintained the vehicle properly. However, it is possible to purchase a pre-owned, late model car with the original factory warranty intact from a reputable car dealership.

Advantages to buying new and used cars

• A new car will generally demand less maintenance as the average warranty period of at least three years assures the buyer of hassle-free driving for quite some time to come. Many manufacturers also offer free roadside assistance while the car is under warranty.
• The leading finance houses are likely to offer better rates when buying new, as the mint condition product will offer better collateral and is less likely to break down.
• Buying a new car or a pre-owned car from a car dealership will offer peace of mind as the full might of the law is behind the consumer. Buying a used car at auction or from a private source can be dodgy, as there is very little legal recourse should the vehicle turn out to be a ‘lemon’
• ‘Purchasing pristine’ will mean total freedom of choice as far as the make, model, colour trim and accessories are concerned.

At the end of the day, the debate of whether to buy a new car or a used car will hinge on pride of ownership versus fiscal frugality.