New versus used car
New or used? That is the big question when it comes to buying a car. But which should you choose?
There are advantages and disadvantages to both and you want to make sure you’re well informed about your choices. It’s no secret that insurance will also be a major factor in your decision, adding another complication. So let’s dive into all the details.
An older vehicle may be more expensive to insure because spare parts may be pricier or not available at all. But most of the time, a new car will cost more to insure because it is worth more than a used model right now.
In addition, the replacement cost on a new vehicle will be higher. And it makes sense: if you buy a beater to get you through the winter, the insurance company will have to pay perhaps $4,000 to replace it in case of theft. On the other hand, a new car can easily cost upward of $20,000.
Don’t forget that more expensive cars also require more coverage.
So does it make sense buying a new car? The answer depends on your budget and priorities. For some people, the extra sticker and insurance cost are worth the peace of mind of having a vehicle that has a full warranty and won’t break down for years. If you don’t want to deal with the hassle of repairs, a new car may be the right option for you.
You can find a workable compromise between new and used by purchasing a lightly used late model car. Usually these cars are under five years old meaning the warranty is still in force and a large chunk of depreciation is already behind you.
Granted, a newer car like this will cost more than an older model, but it will also have fewer miles on the clock and be in better shape. The result is that you get to enjoy a few years of reliable service from your car at a reasonable price.
Contact us right now if you’re looking for quotes on your car and together we will create the best solution for you based on your needs and budget.