5 Aspects to Consider When Choosing between New and Used Cars

Compare the cost and value of the car, not the price. Read and learn more at SpotMe.

Compare the cost, not the price

A car has unique meanings for each person. It can be a mere vehicle for daily commute, something to take your family on a road trip with, or for building your business. That’s why, buying a car must be taken seriously to avoid any regrets. One of the challenging parts of it is to choose between new and used cars? To help you compare, we list some key aspects that will be useful.

The price
Calculating how much you can afford is very important. This can give you a big picture of what kind of car you can buy. If you have a limited budget, a used car can be an option, because, for the same type of car, a new car is surely more expensive than the used one.

For additional information, due to depreciation, the value of a new car will drop by 20% in the first year. Thus, so many people are looking for used cars. But keep in mind, the price is not the only factor that you must consider.

The availability
You can choose from many, many more types and models if you buy a new car – almost unlimited. You can choose any new car that meets your taste and specification standard. On the other hand, the type of pre-owned cars is limited. You probably won’t find a barely used, six month-old hybrids, SUV car with a perfect body and a four year-long warranty in a pre-owned car dealer.

The condition
Generally, a new vehicle is always on the best condition the first time you buy it. You don’t need to worry about services and scratches. You only need to ask for its specification and the maintenance services. Buying a new car is almost completely worry-free.

On the other hand, you need to do thorough examinations if you buy a used vehicle. The car’s age and history, engine performance, air-conditioner, brakes, steering wheel, lights, interior and exterior – basically all parts and every inch of the car. A used car will likely need more maintenances than new ones. To get yourself some useful insights, take someone who understands cars and engines to the dealer.

Financing options
Purchasing a car can be done by paying it with a lump sum of money or taking a loan, depending on how much you have right now. However, taking a car loan is more common and there are several types of loan to suit your needs:

– Secured loan
This loan will tie your car as the collateral. You can buy a pre-owned car with a secured loan, but the option is limited because it really depends on the car’s condition. Not every used car meets the requirements of the secured loan.

– Unsecured loan
This loan doesn’t require any collateral. You can use the loan freely to buy any type of car, but the interest rate is relatively higher than a secured loan.

– Car dealer loan
This loan is offered by a car dealer where you want to buy the car. But note this, not every car dealer provides a car loan.

Overall, buying a new car by taking a loan has more options than buying the used one.

Car warranty period
A new car has a full warranty from the manufacturer. This can vary from 1 year to 8 years and from every 2,000 KMs driven to unlimited KMs. But, when you buy a pre-owned car, you only have the remaining car warranty. For example, if you buy a one-year-old car with 2 years warranty, that means you only have 1 year warranty left. But don’t worry, you can purchase additional car warranty in an insurance company.

Buying a new or used car must be considered to fit your needs and budget. Consider every aspect carefully and choose wisely, because there’s so much more to consider other than the price. If you need extra some money to buy a car, you can apply for a short-term loan at SpotMe. Apply now and bring in your dream car!

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