When you buy a new car and drive off the lot, the value of the vehicle immediately depreciates. However, this does not necessarily mean that buying a new vehicle is a poor investment. Although many individuals believe that used cars are always a better investment than new vehicles, for some people buying a new car might be the wiser financial choice. Here are some tips to help you determine whether you should purchase a previously owned vehicle or one straight off the factory floor.
Think About Features What You Need In A CarFirst, you should think about what features you want in your next car. If you are anxious to enjoy the latest stereo equipment or really want a car with a built-in GPS system, you might be better off getting a new car. However, if you are content with just the basics, you can consider pre-owned vehicles.
Evaluate Your Typical UsageYou should also consider how much you drive your vehicle. If you only use your car to run a few local errands each week, a used car might meet your needs. However, if you commute, a used car with high mileage might not turn out to be a bargain. If you drive a high mileage car long distances, it could break down, stranding you on the highway. You would need to call roadside assistance, and these services can be costly. A brand new, reliable car that will not require frequent repairs might be a better financial investment for a commuter.
Consider Gas Mileage If You CommuteAnother consideration for commuters is gas mileage. Many new vehicles offer better gas mileage than cars manufactured in previous decades. The less gas your vehicle uses, the less frequently you will need to fill up your car at the gas station. Fewer fill-ups are good for the environment and help you save money on gas. Additionally, if you purchase a hybrid car, you could be eligible for a tax credit. If you are a commuter, gas mileage is an important consideration.
When Safety Really MattersIf you have children or are planning to start a family soon, you should think about available safety features when you decide between a new and used vehicle. Many new vehicles offer safety features that have only recently been developed. For example, some cars come equipped with technology that alerts rescue workers if you are ever in a car crash and cannot make an emergency call because of an injury.
Additionally, many new vehicles are constructed in a way that ensures the protection of the occupants if the car ever gets in a collision. Check the safety rating of any vehicle you are considering before you make your purchase. Even if you decide to purchase a used vehicle, consider having the safety equipment tested. You do not want to drive your family around in a car without working airbags and safety belts. You cannot put a price on the safety of your loved ones.
Think About How Soon You Will Replace Your Vehicle
Car owners who love to drive the most recent model or enjoy trying out different types of cars should consider leasing a new vehicle instead of purchasing a used one. Although leasing is not typically the best option for budget-minded car buyers, if you plan on selling your car after just a year or two, leasing might be the right choice for you.
About the Author
James Tillman is a fellow car enthusiast, who is also an author and researcher - he's also written for Cure Auto Insurance, as well as a few other automotive blogs.