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What is Better to Buy a New or Used Car?

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If you are thinking of buying a car, but you don’t know whether to buy it used or new, here we are going to explain what things you should consider before deciding to buy a car. Since this depends on your financial situation, the credit score you have and how much you could pay monthly for the vehicle, among other things.

Credit

You should know your credit score before buying a vehicle to evaluate whether it is more cost effective to buy a used or new car. Auto dealerships provide great benefits and offers to those with good credit . Similarly, if your credit is good (greater than 661) you could have a better chance of getting a good vehicle with a low monthly payment.

According to BankRate, people with a credit score of less than 500 points would pay approximately $ 645 per month to finance a new car. Also, they could pay $ 10,000 more in interest than someone with good credit

Because of this, if your credit score is not high, it could be more beneficial for you to buy a used car, so that you have a more comfortable monthly payment.

Financial situation

Another thing you should consider before buying a car is your finances. Since if you buy a used vehicle you should be aware that it could require repairs that insurance or guarantees often do not cover. While new cars usually have an extended warranty or the car dealer provides free or low-priced maintenance services for a specified time.

For example, when purchasing a new vehicle from Toyota, the dealer offers a no-cost maintenance plan for 2 years or 25,000 miles, whichever comes first. They also provide 24-hour roadside assistance for two years, regardless of mileage.

If you buy a certified used car, that is, at a car dealership, you can also receive some type of maintenance or warranty service for the vehicle

What is better to buy a new or used car?

Before buying a car, you should evaluate your financial situation, so that you can make the best decision.

If you are thinking of buying a car, but you don’t know whether to buy it used or new, here we are going to explain what things you should consider before deciding to buy a car. Since this depends on your financial situation, the credit score you have and how much you could pay monthly for the vehicle, among other things.

Credit

You should know your credit score before buying a vehicle to evaluate whether it is more cost-effective to buy a used or new car. Auto dealerships provide great benefits and offer to those with good credit . Similarly, if your credit is good (greater than 661) you could have a better chance of getting a good vehicle with a low monthly payment.

According to BankRate, people with a credit score of less than 500 points would pay approximately $ 645 per month to finance a new car. Also, they could pay $ 10,000 more in interest than someone with good credit.

Because of this, if your credit score is not high, it could be more beneficial for you to buy a used car, so that you have a more comfortable monthly payment.

Financial situation

Another thing you should consider before buying a car is your finances. Since if you buy a used vehicle you should be aware that it could require repairs that insurance or guarantees often do not cover. While new cars usually have an extended warranty or the car dealer provides free or low-priced maintenance services for a specified time.

For example, when purchasing a new vehicle from Toyota, the dealer offers a no-cost maintenance plan for 2 years or 25,000 miles, whichever comes first. They also provide 24-hour roadside assistance for two years, regardless of mileage.

If you buy a certified used car, that is, at a car dealership, you can also receive some type of maintenance or warranty service for the vehicle

After analyzing your credit and financial situation, you should consider the advantages and disadvantages of purchasing a new or used car. So that you can choose the car that best suits you according to your needs.

Advantages of buying a new car

Some advantages of buying a new car is that you do not have to worry about its history, since you are the only owner who has had the car. And if it has any mechanical failure or defect, from the factory, the company would repair the car at no cost. Similarly, new cars offer a more extensive or comprehensive warranty, if any part is damaged.

When buying a new car, it will have all the security systems and technology updated, since it is modern. You can read this article so that you know the best car brands: What are the best car brands?

Disadvantages of buying a new car

Some of the downsides to buying a new car are that it can be expensive if you don’t have good credit. Similarly, new car insurance is often more expensive. According to Auto Insurance, insurance for new cars is more expensive, because the repair costs of these vehicles are more expensive.

Another disadvantage of buying a new car is that its value depreciates (drops) immediately after you buy it. According to The Economic Times , depreciation is when “the monetary value of an asset decreases over time due to wear and tear or obsolescence.” After the first year, a new car loses more than 20% of its value, according to a CarFax report .

Advantages of buying a used car

By buying a used car, you could get a good vehicle at a low cost, without losing its value so quickly. In addition, you can have auto insurance at a more affordable price.

Lendingtree explains: “Insurance premiums if required by the lender, can be substantially lower than those for new vehicles. The age and model of the vehicle affect the cost of the premiums ”.

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