If you are in the market for a new car, chances are you have considered a preowned vehicle. While everyone loves to buy new, economic forces being what they are have made a preowned vehicle a somewhat wise investment. Take these items in to consideration when deciding which path to follow to your new vehicle.
Buying a new car is a must for some people because they want to be on the cutting edge of all the new options or features that today’s new cars offer. However, according to Consumer Reports, much of the time a car from even one to two years ago can carry the very same features, only at a discounted rate. There might be certain features you think you cannot live without, but do your research. Find out how long that feature has been included on the car you are interested in.
Once a car buyer drives his new purchase off the lot, he’s already lost some of the initial investment in the vehicle through depreciation, as the Money Crashers website references. If the car he drives away in is preowned, the depreciation hit is significantly less. If you plan to possibly trade in this car for something better in the next few years, used might be a smarter route.
When you are buying a car, you typically are bringing home a better vehicle than you came in with. Bankrate details how the hidden consequence of owning a new car is also driving your insurance bills higher, resulting in an unintended extra cost each month. Consider whether your bottom line can not only afford the high car payment that will come with a new car, but also the hefty insurance pricetag.
It used to be that buying used meant you were rolling the dice on being responsible for what happened to an out-of-warranty vehicle. However, manufacturers have recently been taking preowned vehicles, usually less than three years old, and giving them the once over. Once these cars pass inspection, they are listed as “certified” preowned by the manufacturer, and usually come with a short warranty. This can allay fears sometimes associated with used vehicles and the hefty repair bills they sometimes generate.
Of course, everyone’s situation is different. All buyers should do thorough research and know exactly what they are looking for in a vehicle, and what they are willing to pay for. Remember, no matter what option you pursue, the general rule of thumb is to only purchase a vehicle that you know you can pay off in three years. Also, make sure to have your mechanic check out any car before you decide to buy.