Some people go for their entire lives without buying a brand-new car. Often, that’s because they can’t afford one. Maybe you have someone who’s a licensed driver for a long time, but they never have enough cash to buy a brand-new car.
Some individuals never want to buy a brand-new car because they feel like they can get in an accident at any time. If they’re driving a vehicle around in very poor condition, though, they probably won’t even bother with hiring a car wreck lawyer and suing the other driver. They can just scrape a few thousand dollars together and buy a replacement.
No matter the reasoning behind your choice, the decision to purchase either a brand-new car or a used one can make a major financial difference in your life as time passes. Let’s talk about the possible monetary impact of this decision.
If You Buy a Brand-New Car, It Should Come with an Excellent Warranty
Let’s start by talking about what it might look like for you financially if you buy a brand-new car. A moment ago, we mentioned why some people don’t want to buy brand-new cars. They may feel like, if they have a brand-new vehicle, they need to worry about it too much.
If their car is basically a rolling piece of junk, though, then they don’t have to concern themselves with it much, even if they park it in a bad neighborhood. If someone steals it, and they can’t recover it, they can easily and cheaply replace it.
You can certainly look at the situation that way, but if you buy a brand-new car, some definite benefits come with that. You will probably have to pay more money upfront, but you should get a generous warranty with the vehicle.
That warranty might extend for two-three years, on average. If anything goes wrong with the car during that time, the warranty should cover it, so the repairs will cost you nothing.
If You Have a Newer Car, It’s Not as Likely It Will Break Down
If you buy a brand-new car, then again, you have to pay more upfront. It’s not as likely that it will break down, though, since a new car will logically come with all brand-new components.
You can go on a long road trip and not have to worry about your brand-new car breaking down. You probably can’t say the same thing if you bought a junker instead.
If You Buy a Used Car, It Costs Less Upfront
If you buy a used car, then that can also benefit you financially in some ways. It is obvious that almost any time you buy a used car, you will not have to spend as much upfront to get a drivable vehicle.
You probably won’t have to accumulate more than a few thousand dollars to get a used car that runs. Maybe the low price tag’s the only good thing that you can say about it, but at least it’s operational. You have wheels, and perhaps that’s what you need to get to and from work each day.
If you want a car just for utilitarian purposes, and you have little money to spend, then maybe that’s your best move. If you have hardly any money, perhaps it’s your only option, whether you’d like a newer vehicle or not.
With a Used Car, Major Repairs Often Become Necessary
There’s another aspect of buying a used car, though, especially if you get one that’s clearly not in very good condition. It might cost you very little upfront, but then, the chances become much higher that the vehicle will break down sooner rather than later.
If you’re looking at a used car, it might seem okay while it’s sitting on the lot. Maybe it’s a lemon, though, to use car-buying parlance.
If you’re someone who knows a lot about cars, then you can probably look it over and determine if there’s something obviously wrong with it. However, if you only know a little about vehicles, or almost nothing, then you have no way to tell whether you’re buying something that could break down literally the day after you buy it.
If you purchase a used car, and it immediately needs major repairs, then you’ve done yourself a disservice. You wanted to save money, but now, you will need to spend some to even make the vehicle drivable again.
