Buying A New Car vs An Old Car

by Pauline Go Platinum Quality Author

One aspect that many people often ponder while purchasing a car is whether to buy an old car or go for a brand new vehicle. According to available statistics, three times as many used vehicles are sold every year than new vehicles. Why do people have a preference for an old second-hand car than a new one? Before answering this question, one should have a clear idea about the advantages and disadvantages associated with an old and a new car.

New car

The most significant benefit of a new car is that it is equipped with the latest technology available in the market and has a comprehensive warranty provided by the manufacturer. While some manufacturers provide a warranty on the engine, others provide warranty on other major parts inside the vehicle. Apart from this, a new version is fitted with latest safety, comfort and convenience features available. Being the first owner to use the car, one who buys a new car should not worry much about any technical or mechanical problems that arise after accidents or rough usage.

The most important disadvantage of a new car is its cost. New cars are really expensive in comparison to old cars. Apart from this, there are also other associated costs while buying a new car. These include vehicle taxes and insurances costs that are also higher for new cars. Once the car comes out of the showroom, it loses its value by almost 25 percent.

Old car

The biggest benefit one gets in buying an old car is the cost effectiveness. Older cars are cheaper that newer ones. These are apt for somebody having a restrained budget. Also, comprehensive and theft insurance costs are likely to be low in case of old cars. However, the disadvantage of buying an old car is that it does not carry any manufacturer’s warranty neither on the engine nor on the battery. Since it is a used car, one would not be aware of possible maintenance and repair that it might need in the immediate future. With regard to safety and mileage efficiency, older cars are always at a risk since they do not carry the latest safety features and other technical advancements.

About Author: Pauline Go is an online leading expert in finance industry. She also offers top quality financial tips to investor like.