Have you and your family members finalized on buying a new sedan (or any other car)? Ready to spend a big part of life’s savings! Car buying is second only to property buying; it is a high price tag item which most of us ignore.
Journey by car!
Used car may be an option-
Wait a second, by buying a brand new car you may land up in a midlife crisis! Not the kind of midlife crisis which usually roams in your mind giving scares, but the type that will lead to financial burdens continue until you meet your midlife. It’s an easy trap in which most of us
Lower loan interest rate-
Most banks charge a lower interest rate for used cars in comparison to the new cars. While, some private car financiers may offer lower interest rate for new cars, shop, beware of them.
Are they safe and sound?
Maybe or may not be, you can’t predict whether the used car which is in front of you for inspection is free from all technical clinches or not? You need technical help from an expert, who know more about cars
Deprecation – According to a report on four Wheeler published some years back, says that a brand new car on an average loses 17% of this value after the first year of ownership. The figure can vary here and there, but not the truth of deprecation. Therefore, buying a used car is better, buy a car which is sold by the owner after one or two years of usage. Isn’t that money-saving trick!
Yes, of course, a used car is more likely to be serviced for a long life. It is a fact of used cars. But, your smartness can counter that.
Insure your car immediately after transferring the ownership of the car in your name. Find a reliable and economical auto mechanic for your used car. Avoid big car care center, which is there to burn a hole in your pocket.
Low car insurance rate-
Similar to financing, the insurance rate of used cars gets affected by age. The value of a new car is more than the value of the old (not need of a rocket to understand that); this also shows in your insurance premium.
The ball is in your court to make the final decision! New car or old car, but a new car is isn’t a worthy option. New cars have the higher interest rate on both financing and insurance, new features that don’t add value and have higher depreciation rate.
On the other hand, used cars are cheaper, less depreciation, low-interest rates. However, you have to find the right one for you.
If you are saving for buying a new car, then read the above tips before making payment for your own new car.