There can be mixed feelings involved when you are purchasing a vehicle. Some people feel excited about the whole thing but it can also cause a lot of stress and worry because it is such an important investment for many people. When you are buying a car, you have to make a variety of choices and this includes making a decision with regards to whether to buy a new or used one.
Buying a new car is something that many people would love to do but do not have the financial means to do this. Even though you can get a car loan, it is important to remember that the value of the car drops as soon as you drive it away from the dealership, so you have to take this into consideration. In addition, you will generally need a decent credit score if you want to take out a loan, so if you have bad credit this may not even be an option.
How to make your decision
There are a number of different things that you should look at when making a decision with regards to whether to opt for a new or used car. Some of the main ones that can make a big difference include:
- Your credit score: If you have good credit, you have the luxury of choice as you should be able to get finance. However, if your credit score is damaged you may not be able to get a loan or finance for a new car so you may need to turn to a used car that you can afford to buy outright from a private seller.
- Your finances: Even if you are able to get a loan or finance, you have to determine whether you can comfortably afford to make the repayments on the loan if you opt for a new car. The cost of buying brand new is much higher than buying used because the value of the vehicle does not fall until you drive it off the forecourt.
- Your experience as a driver: If you are new to driving and have not long passed your test, opting for a brand new car is probably not the best idea. When we first start driving, we are at increased risk of accidents due to lack of experience. In addition, insurance premiums are higher for new drivers. Having a new car is therefore probably going to prove expensive to insure and could leave you in a financial pickle if you have an accident.
- Where you plan to drive the car: If you are just buying a car to drive to and from work or just to visit friends and family, a used car may be fine. However, if you are going to be driving long distances, driving for long periods, or driving other people around, you may want the reliability and peace of mind that comes with having a new car.
So, make sure you consider these points before you make your final decision with regards to whether to opt for a new or used vehicle.