New vs. used cars: what's best for you in 2023?

Are you planning to buy a car? You must be feeling like being stuck between a hard rock and deep blue sea as it is quite hard to choose between a new car and an old car. New Year is about to come, and now is the time when you see car dealers coming with exciting offers to prompt their sales.

However much you are desperate to buy a car, the recent economic crisis may hold you back. Even if you have a considerable amount of savings, the lately increased interest rates will scare you off. It adds up the total cost of the car. Of course, it is going to be challenging to buy an expensive car.

A used car could be a better alternative if your sole purpose is to just save money, but other factors like overall condition of the car could put you off. Well, there is no straightaway method to choose between a new car and an old car.

Both alternatives have their own pros and cons and you will have to make a decision based on that.

Case 1: buying a new car

A new car is fresh from the showroom, meaning you will be the first owner of this house. You will have an inexplicable feeling when you get behind the wheel. The big advantage of buying a new car is that you get to choose the exact specification.

In addition, you get the warranty protection from a manufacturer if something should go wrong. Finally, you do not have to worry about unknown history. Apart from these benefits, newer cars are supposed to support advanced technology.

If you are looking for a fuel-efficient car, you should not underestimate this feature. Most of the drivers focus on fuel efficiency because of the rising cost; however, it is partly due to the emphasis by the government to protect the climate from carbon emission.

However, there are certain drawbacks with new cars as well. The biggest drawback is depreciation. It is the difference between the market value of the car at the time of buying and salvage value at the time of selling.

New cars depreciate faster than old cars. They see a 30% drop in their value as soon as they are come out of the showroom. Depreciation is not just the only downside of buying a new car. You will likely have to pay higher insurance premium.

The value of insurance premium depends on the model you choose. The more expensive the car, the higher the insurance will be. You cannot ignore the insurance premium at the time of deciding on a car as it will have a long-term effect on your budget.

Case 2: buying a used car

A used car could be an alternative among those people who are in the tight spot. One of the benefits of buying a used car is that they are worth half the cost of a new car. It means you will be able to save much more than that.

If you have a considerable amount of savings, you will not have to borrow a lot of money from lenders in Ireland. It means you can save a lot of money in total interest. However, even if your savings are not much, it will be a more affordable alternative.

Another benefit of buying a used car is that they do not depreciate as fast as new cars. However, on the other hand, they have already lost up to one-third value. If you are buying a car from a registered dealer, you will likely get the best deal. There is no risk like unknown history involved.

If you try to buy a secondhand car from a private dealer, unknown history may come as a surprise later. Though there are some benefits, buying a used car involves some drawbacks as well. You will not get warranty whether you buy privately or from a dealer.

If you come up with any issues later, you will have to get it repaired on your own. If you are to take out car finance for bad credit in Ireland, make sure that you have got a repair budget as well. Used cars need repairs more frequently than new cars.

From the day you get the possession of the car, you are responsible for the servicing of your car. Unlike new cars, you will not get a couple of services free of cost from the car manufacturer’s service centre.

Is it worth buying a new car or used car?

Whether you will opt for a new or used car will come down to what you are exactly looking for.

You should buy a new car if:

·         You want a car with specifications you like.

·         You are in search for the latest model.

·         You want to be the first owner of a car.

·         A manufacturer’s warranty is crucial for you.

You should buy a used car if:

·         You want to save on the down payment of a car.

·         You do not have a problem to offset the saved money with higher maintenance.

·         You are happy even if it is not the latest model.

The final word

Buying a car is daunting especially if you are not sure what kind of car you should buy. Well, whatever the option you look for, it is crucial that you have analysed your budget. If you are to take out car loans from direct lenders inIreland, make sure you do not have to struggle with payments.

If your credit rating is less-than-impressive, it becomes more crucial to take into account your repaying capacity as they are slightly more expensive. If you are looking to dealership financing, evaluate the pros and cons properly and then choose your option.

Do proper research, use online loan calculators to get an idea of estimated total cost of the debt, your repair budget, and all related expenses, so you buy a car based on your affordability.