- Sep 27, 2021
A personal vehicle is an asset many of us wish to have to. There are alternatives available, but we cannot deny the advantages of having our own cars. Not only do they provide mobility, but they also grant more freedom in our schedules. Our lives are a lot less hectic when we can rely on ourselves to get us to places.
If you’re looking to buy your first car, know that it means deciding upon many factors. Brand, model, and color are some factors, to name a few. Auto title loans are another factor. In places like Utah, you can choose from several providers.
The most important decision, however, is choosing between pre-owned vehicles or new ones.
The Case against brand new
“New is better” is a philosophy that many of us believe. When an item is purchased brand new, there is usually less risk of it breaking down on the owners compared to when it’s been used.
This idea can apply to vehicles, but the technology has improved so much that it’s less likely to happen to cars younger than ten years. Not only that, but car dealers also have ‘Certified Pre-Owned’ options. These are pre-owned cars with qualities that have been checked over by the manufacturers and refurbished. This ensures that the new owners will get their money’s worth.
Given these, here are the reasons why “new is better” shouldn’t apply to vehicles.
Depreciation and Equity – Vehicles are depreciating assets. The moment we purchase them, their value goes down immediately. In the first few years, a car’s value can drop 20 to 30 percent from its original price. A person who pays $20,000 for a new vehicle will have to pay back the same amount for a car whose value has likely gone down to around $18,500 in its first year.
Same Quality for More-
With depreciation, vehicles in their first three years run as well as cars that have never been used.
That is further guaranteed if it’s Certified Pre-Owned. Following this logic, individuals who buy new vehicles choose the option that loses them more money. For example, a pre-owned car selling for $20,000 with 10,000 miles and no scratches or stains are as useful and of good quality as the brand new version going for much higher.
Tips on the car purchase
Consider Pre-Owned – The pre-owned market doesn’t give much freedom when it comes to creative choices. But it is the smarter option for people who want to save money but not sacrifice quality. Some pre-owned vehicles are affordable enough that new owners can even pay for them through cash.
Don’t Customize – People set on owning new cars should try to avoid buying into the notion that their cars should reflect who they are. Customization works in most cases, but not this one. Mufflers, different rims, and even bright paint will likely affect the resale value of the vehicle.
Maintain Properly – Cars that are cared for correctly depreciate less than the ones that aren’t. Regular upkeep and organized records are two significant aspects that car owners should consider when they purchase a new car. Not only will this help in maintaining the vehicle, but it will also be essential when choosing to sell it in the future.
With that, no one can stop a person from purchasing a new vehicle. However, individuals looking to own one should research the market. They never know; the car that they may be going for might be selling for less, which can end up saving them more money.