New or used; which is right for you?
If you are in the market for a new car, you may be struggling to decide if you want a brand-new car or a used model. When it comes down to it, this is a major decision that requires a lot of consideration. For instance, here are some of the things you should think about when deciding to go new or used.
- Budget
Your budget is one of the biggest factors to consider when deciding between a new and used car. Obviously, buying a used car will be far more economical than buying a brand-new car and driving it off the lot.
- Insurance Costs
Insuring a brand-new car is typically more expensive than insuring a used vehicle. This is because new cars are more costly to repair or replace. However, keep in mind that buying an older used car will not necessarily save you money on insurance. Because older cars do not have updated safety features and tend to be less reliable, they are more likely to be stolen or involved in an accident. These risks translate into higher insurance costs. Generally, buying a used car that’s only a few years old is the best way to maximize your auto insurance savings.
- Reliability and Maintenance
When purchasing a car, reliability is one of the most important things to consider. Brand-new cars will naturally be more reliable and have fewer maintenance issues than older, used cars. As a general rule, the older the car, the less reliable it will be. If you are planning on buying a used car, it’s vital to get a vehicle history report and have it inspected by a mechanic. Taking these steps will ensure that the car you are buying has been well maintained and has not experienced issues in the past.
- Depreciation
A brand-new car will depreciate in value the moment you drive it off the lot. In fact, new cars depreciate between 15 and 25% every year during the first five years of ownership. It’s not uncommon for drivers to owe more on their new cars than they could earn if they were to sell the car. So, if you are not in a position to absorb this drop in value, then you are safer buying a used car.
These are some of the things that you should consider as you decide between a new and used car. No matter what car you choose, it’s important to secure the right auto insurance to keep your vehicle safe. For assistance with all your car coverage needs, contact the experts at Pierce Insurance Group today.