Should Students Buy A New Car or A Second Hand Car?
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Buying a car is often a daunting task. The first hassle is that you have to pick from various models, and the second big challenge that you are faced with is deciding between a used car or a new car.
Before we compare the pros and cons of both situations, let us first put out some basics – Car is a depreciating asset. This implies that it will lose its value over time.
Hence, it cannot be classified as an investment like a home. Thus, it would be best if you considered cost-effectiveness when shopping for a car. For instance, you need to compare the price of the car to the number of miles you will get from it.
Alternatively, for a student who has to travel only a short distance every day, the third consideration is – Is buying a car even worth it? When you purchase a used car, you need to consider some other aspects too because, in this case, your maintenance cost will be reasonably higher than the new car, and the mileage will also be low.
So, the choices become all the more difficult. The big question remains – should you buy a second-hand car or a new one?
Let us look at the pros and cons of both options and then weigh them to see which is the better option.
Pros of Buying a New Car
It goes without saying that the curb appeal of the new car is high, from the smell of that fresh interior and the new pain, along with the oohs and the ahhs that you get when your friends see it for the first time.
More so, even in the customer culture, the new, unused car is considered to be a greater status symbol than a used, second-hand car. But curb appeal, aside, there is an array of other pros associated with a new car.
The Maintenance Cost Is Less.
If you buy a new car, you will save massively on the maintenance cost, especially for the first six to twelve months from the purchase. The money you save here can be utilized elsewhere, such as buying some top-quality assignments by experts from TopAssignmentExperts. In this manner, you can get yourself a top-quality car and maintain your grades too. Is it not a win-win from both ends?
More so, even after the twelve months, the maintenance that your car requires is usually free.
On the other hand, in the case of an old car, you will be required to change the engine oil a couple of times a year. There will be other added expenses, such as cleaning the air filters, changing the battery, and others.
Also, if the car bought is not in good condition, it can always call for expenses now and then.
Free Roadside Assistance
Again, most new cars come with roadside assistance. So, you can save big on the coverage, and there will not be a towing bill handed over to you if your car breaks down.
For a student with a tight budget, money saved is money earned. You can use this opportunity cost on getting the finest quality assignments from EduWorldUSA and save some time that you can spend exploring new destinations with your car.
You Get the Latest Features.
Naturally, the newer the car, the more updated features it will have. It will be updated with the most top-end safety features and adhere to the latest fuel efficiency standards.
Promising and Lucrative Financing Deals
Today, several dealers and carmakers provide exclusive financing deals with little to no interest to the A-grade students. So, you can get a goodwill deal if you have been an A+ student in the past and to ensure that, you can seek help from experts at TFTH. This deal can make financing a new car less pricey than an old car.
Cons of a New Car
Everything has a flip side, so does buying a new car. Let us address some key disadvantages associated with a new car.
You Lose Money Every Day
As established, a car is a depreciating asset, and it starts losing money as soon as it hits the road, and a car depreciates the most in the first three years. In addition, it implies throwing away several dollars that you could have otherwise saved in the old car.
So, financially speaking, buying a new car makes sense only if you have the money that you do not mind losing.
You Don’t Know What to Expect from a New Model.
When you buy a car from the recently launched model, you do not know what to expect from it. There are no reviews or customer testimonials to look up to. Hence, it may be seen as a considerable risk if the car does not end up being as good as you thought of it.
There Are Some Extra Fees
In a new car, you will have to pay extra fees, such as registration, RTO, and road taxes. These are absent in the second-hand car as they have been borne by the previous owner already.
Pros of a Second-Hand Car
Some advantages of buying a second-hand car are discussed below.
You Are Protected from the Highest Depreciation Cost
As discussed, the significant depreciation in the car happens in the first three years. If you buy a used car, you are saved from this cost.
Selling Cost May Be the Same as the Buying Cost.
In some cars, the cost of the car does not reduce after a few years. If that is the case, you may have a chance to sell your second-hand car at the same price that you paid for it.
Good Financing Options
It is not impossible to find good financing options for your second-hand car via a credit union or a local bank. More so, since you aren’t losing much on the depreciation, your overhead cost might often be lower than that in the case of a new car.
Insurance Rates Are Often Low.
This is model-specific, but in several cases, the new car’s insurance cost might be higher than the second-hand car.
Cons of a Used Car
Some disadvantages of buying a second-hand car are discussed below.
Might Need Higher Maintenance and Repairs
As the cars require greater repairs and maintenance over the years, an old car might demand immediate repair and maintenance, while the new car will not require repairs for the first couple of years.
There Is Always a Compromise Involved.
In a used car, you might not get the features or the color that you desire. So, this is one non-negotiable compromise that you may often have to make. More so, shopping for an old car demands greater patience and flexibility than a new car.
So, we have laid out the pros and cons of both old and new cars. Then, you can weigh them in and make your decision.