It’s hard to resist the lure of that new car smell. And, for many, a new vehicle is the ultimate status symbol. But if you’re on a budget, buying used can still provide the thrill and fun of buying the ultimate big-ticket item with a much smaller price tag.
Compare the two options
|
New |
Used |
| The standard rule of thumb is that a new car loses 20 to 30 percent of its value the first year you own it. |
A used car has already depreciated in value. You benefit by paying considerably less. |
| Repairs are likely to be covered under warranty. Regular maintenance checks may also be included. |
Many car dealers offer fully inspected certified used vehicles that are still under warranty. |
| Dealers often offer attractive rates on new-car financing. |
Competitive financing is also available for pre-owned cars. |
| Insurance coverage is usually more expensive on a new car. |
You’ll likely save on insurance if you buy used. |
| You can order a wide selection of customized options when you buy new. |
Many used cars have expensive options already installed that you don’t have to pay extra for. |
| With a new car you have no concern about possible problems/accidents your car has had in the past. |
Buying through a reputable dealer can eliminate much of the risk of buying used. |
Buying a used car privately
It’s very easy to buy a used car from another private party. But watch out for vehicles that have not been taken care of properly or have had major repairs. Web sites such as autotrader.com offer all the tools you’ll need to:
- Hook up with a suitable seller.
- Compare and contrast different vehicles.
- Find the true market value.
- Research the history of a given vehicle using the VIN number.
What to look for
Before you go car shopping, make a list of all the key features you are looking for. This will help you to separate what you need from what you merely want. Consider such things as:
- Does it have the cargo space you need?
- Are the driver controls comfortable to use and easy to find?
- Does it have the passenger space you need today -- and may need for your growing family three years from now?
Take a test drive
Regardless of whether you buy a new or used car, taking a test drive is essential. Try to simulate as closely as possible your day-to-day driving patterns and make sure the vehicle handles well.
- If you do a lot of highway driving, take the vehicle onto the highway.
- If you’re a city driver, check out how easy it is to squeeze into tight parking spaces.
- If you live in a hilly area, test if the vehicle has the climbing power you need.
- If you often have a car full of backseat passengers, bring them with you, and get in the back yourself to see how comfortable it feels.
Being practical doesn’t mean you can’t go for a few bells and whistles. But make sure you buy a vehicle that is going to meet your needs and fit in with the reality of your daily life.
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