Choosing Between A New Or Used Car – 5 Things To Consider

If you are looking to buy a car for your family there are several decisions you need to make. Apart from selecting the make and model, you also need to decide whether you’re considering a new or used car. Here are some differences between purchasing a new or used car to help you make an informed decision.

Choosing Between A New Or Used Car? Here’s What You Need To Consider

Warranty

The best thing about choosing a new car compared to a used car is the warranty. A new car warranty generally covers most major issues and repairs you might experience during the first few years. Since most new models typically do not need any repairs during the first few years, the only thing that you should worry about is upkeep and maintenance.   

When buying a used car, you’re not always 100% sure about what you’re getting. Plenty of old cars are still reliable, but sometimes when you buy a used car, some of its issues only resurface after you’ve already signed the dotted line. Any repairs are most likely not covered under a warranty as the case would be with buying a new car.

Another option you can consider is purchasing a certified pre-owned (CPO) vehicle. A CPO vehicle has undergone inspections and was resold by a manufacturer. You might even get a warranty. If you decide on buying a used car, it’s worth having a special savings account. Set aside a bit of cash every month to cover any repairs or unforeseen car expenses that might come up. You can call it your car emergency fund.

Price

The most obvious concern when buying a new car is that it costs a lot more than a used vehicle. To make the deal more alluring, the dealer might offer new car financing at a more favorable interest rate, which means you will pay less towards interest. Some dealers might offer zero-interest loans for new vehicles.

Make sure you look at your budget beforehand to evaluate what you can afford. You can use an online car payment calculator to see what your average monthly payments will be. Not everyone can afford a brand new car and you might still find favourable financing options at a credit union or your local bank. It is easier to save up some cash to buy a used car than the case is with buying a new car out of the box.

Insurance

Depending on the car model you choose, insurance rates might be more affordable for used cars than new ones. It is because it costs less to replace an older model than it would be to replace a new model.

Technology

With a new model, you have access to the latest technology, such as lower gas emissions and better mileage. Enhanced technology also makes it easier to listen to music, connect to or charge your smartphone, or find directions with a built-in GPS.

Depreciation

Buying a car is a significant investment. Car values depreciate over time which means whether you’re buying a new or used car, it will lose its value as soon as you start driving it. New cars lose the biggest portion of their depreciation during the first 2-3 years. If you buy a new car and ensure you maintain it well, you might recoup a large portion of the costs once you decide to sell it.

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7 Things To Look For When Buying A Family Car

A car is one of the biggest investments you will make, and it can be an overwhelming task, especially if you’re planning on starting a family. Your priorities are going to change and you want to buy a car that is safe and suitable for the whole family. Here are six things to look for when buying a new family car.

Car Size

The first thing you need to consider is what size car you need. SUVs are available in various sizes and shapes and are a popular choice due to their higher capacity for ground clearance and versatility. Whatever you decide, it’s essential to buy a car that fit the entire family for years to come. It has to compensate for later years when your kids are older.

Fuel Consumption

Budgeting for fuel has always been important, however, in recent times with the rising cost of fuel it is something that plays a huge role in the budgeting of all families around the world. Make sure to take careful note of the fuel consumption of the vehicle you are looking to buy so that you can accurately calculate how much fuel your car will be using and allow for rising fuel prices in the future.

Buying a car that is fuel efficient will pay off in the future.

Cargo

Car manufacturers are becoming more and more innovative and creative as far as maximizing storage space goes. Most new cars come with third-row and rear seats that can be folded into different configurations to make space for cargo. It is worth testing some of these options to see if it might be something your family can benefit from. Some models have additional storage nooks for passengers to store a few items.

Car Seats

SUVs remain a popular choice as family cars because of the additional seating. However, not all models are the same. You will need to consider how many booster seats you will need to strap in during your shopping trips. People mistakenly think that all SUVs can fit three car seats across, however not all of them do. Before buying a car, it is essential to check how many seats come with anchors (latch systems).

Interior

Most vehicles have cloth-covered seats and are more budget-friendly options. However, cars with pleather or leather seats might be more kid-friendly and easier to clean. You might pay a higher price but you will thank yourself later when driving a car with fewer stains and smells.

Safety Systems

More and more manufacturers focus on safety technology, especially over the last few years. Things like blind-spot warning devices, reverse cameras, and more, are being installed to make your driving experience safer. A valuable feature is the automatic emergency braking feature that detects the speed of the vehicle in front of you. It will stop or slow down your car automatically if necessary to avoid a collision. If safety is your number one priority, then it’s worth looking into some of these features.

Entertaining Technology

Nowadays, the array of entertainment options for cars is vast. These include things like DVD players, WiFi compatibility, built-in seat-back tablets, custom headphones, USB charging ports, and more. Some of these upgrades are offered as bundled packages and if your budget allows, can be highly useful to have, especially on those long road trips with the kids.

 Conclusion

If you prefer some of the latest technology features and safety features, then buying a new car might be your best bet. If you’re not that bothered with safety and entertainment gimmicks and prefer a budget-friendly and reliable car, then a used car might be a better option for you. A good rule of thumb to stick to is being able to pay off the vehicle entirely within three years. 

We hope these things to look for when buying a family car were useful and that you will take them on board the next time you’re shopping for a new car. Remember to do your research and check customer reviews on different models to help you decide, especially if it is a used car. Be sure to shop around for the best car loan with favorable interest rates and don’t hesitate to negotiate for a better price.