Buying a car can be a very exciting experience. Picking out what type, color, and extra features can fall into place to make a vehicle seem as unique as you are. Between test driving various options and being able to sit in the driver’s seat, car shopping provides some serious levels of enjoyment (and even fun, for some of us!) But there’s a caveat: new vs used can cost you, in the long run. So, what’s more worth it? Buying used cars in Edmonton could be more worth it – and here’s why.
DEPRECIATION: How (New) Car Buying Can Come Back to Bite You
Depreciation is the financial word for the reduction in value of your asset(s), in regard to the passage of time, due to wear and tear and use. How does depreciation apply, in regard to your new car? Once you drive a new car off the lot, it loses (approximately) 20% of its value. So that $40,000 brand new car that you just bought with all the upgrades is worth $8,000 less than what you paid for it, as soon as you drive away. By the end of the year, you bump up to 30% – or $12,000 (due to mileage, wear & tear). That means your brand-new car is only worth $28,000.
Now, you could buy a new car, with all its perks. If the loss in depreciation is worth it to you, go right ahead! But used cars retain their value longer – meaning you’ll save money in the short term (initial buying cost) and in the long term (resell value).
STIGMAS: Aren’t Used Cars Just Not the Same Quality?
People don’t want to “buy someone else’s problems.” We get it. But cars have never been more dependable, and some cars can get up to 100,000 miles before needing major repairs – making them more reliable than ever. And it doesn’t matter whether you buy new or used – all automobiles need regular maintenance, like oil changes and tire rotations.
I’m Not Convinced – What Are Some New-Car Advantages?
- Buying new is easier – Everything comes in pristine condition! You’re comparing apples to apples
- Financing is widely available – Automakers offer incentives, like rebates, and everyone from your personal bank to the local credit union offers low-interest rates.
- The newest, shiniest technology – New features are being rolled out all the time, so you get the latest and greatest in car technology, right off the bat.
- Reliability – New cars are more reliable, and don’t come with any problems (or shouldn’t!) There are usually factory warranties that can cover breakdowns.
- Bragg ability – We all like to brag sometimes. There is a certain prestige to buying something shiny and new!
Give Me More Used-Car Advantages!
- Lower insurance rates – A lower total worth equals a lower cost to replace, giving your wallet a break.
- Registration – Registration on a used car is usually cheaper than a new car.
- More bang for your buck – Since the overall cost is lower, you can afford a higher class of car!
- The dreaded dings & bumps – It can be seriously depressing to get a ding or bump in your new car. A used car, however? Not nearly as traumatizing.
I’m Sold! What’s Next?
First, do you research. Find out which make and model hold their value the best, and which features you MUST HAVE in your car. Is a new car more worth it to you? Or would the cost savings be more beneficial? When you’re ready to buy new or used cars in Edmonton, head on over to West Side Mitsubishi, and our qualified associates will help you drive away with the car of your dreams.