Why New Cars Are Better Value Than Their Used Counterparts
If you've recently passed your driving test and are in possession of a newly minted licence, then you may think that the world is your oyster. Certainly, exploring Australia is within your reach, and with thoughts of adventure, you may be looking at your car options. If you're still relatively young, however, money may be a challenge and you may be trying to decide between a new or used car as a matter of principle. Well-meaning advisers may tell you to go for second-hand, but this is not necessarily the best course of action any more. What should you be thinking of instead?
Does Depreciation Count?
Traditionally, people worry about buying a new car because of depreciation. They may have been told that such a vehicle will lose as much as a fifth of its value as soon as you drove it away from the dealer. This would be the difference between "retail" and "wholesale" in cost terms, and you simply wouldn't encounter this problem if you were to buy a second-hand version instead.
Value Comparison and Incentives
Nevertheless, this perception may not be accurate today, as certain categories of vehicle are retaining their value very well. This is especially true when it comes to sport utility vehicles or pickup trucks, where two- or three-year-old versions are not that much cheaper than a new one.
Furthermore, dealer incentives can make a significant difference to the cost of a showroom car, and this can come straight from the manufacturer or be applied through low or 0 percent financing. If you time your purchase well, you may be able to buy a brand-new car that has just been replaced by the latest model, but which is nevertheless almost the same.
Major Warranties
New cars will also attract a significant warranty, which will usually be in place for three years of its life. If you only plan to keep your car for that length of time, then you may not have to worry about repairs or replacements down the road. However, you're unlikely to get that type of coverage with a used car, and any savings you may make through purchase may disappear if you have to take it in for a significant issue.
Buying New Instead
Don't assume that the used version of a particular model is going to be the better choice for you. Instead, take into account all of the previously mentioned factors, as you may well be better off with a new version instead. Don't forget — you will also get that coveted new-car smell!
If you have questions about buying cars, contact an auto sales company like Blue Ribbon Motors.