Buying a car is the second largest purchase most consumers will ever make. If you are in the market for a vehicle, one of the primary questions to start with is whether to buy a new car or used car. (Or did you forget to even ask this question?)
Different situations – effectively, different people – dictate different actions. Here are six individual situations on whether to buy new or used:
Two People Who Should Buy New Cars
1. The Techie
Someone who needs the latest and greatest will usually not be happy with a used car that doesn’t have the latest technology. For these individuals buying new is usually the only option as last years model is not going to cut it for them.
2. The Business Owner
Write-offs should always be factored in any decision – as long as you’re business is profitable. If you purchase a used car you can only write off a small percentage of the cost of the car. Most Dealerships will only lease brand new vehicles. As a result it might make sense to lease a brand new vehicle, since your lease payments are 100% deductible in most cases.
Four People Who Should Buy Used Cars
1. The Do-It-Yourselfer
Usually always making a mess. Lugging stuff in the back seat and trunk. A new car will get all scratched up in a hurry. For these individuals getting a used car is usually best, as there is no need to worry about messing up the used car.
2. The 20-Something
Usually money doesn’t come easy. As a result the money savings in buying used can usually be the difference driving or taking transit. Also most students fresh out of school will find getting approved for financing of a new car next to impossible. Used cars can be very cheap for first time car buyers.
3. The Over 65 Crowd
Depending on how well you did in your life will determine which avenue is best to take. If you did great in the stock market and want to splurge, going for that brand new Bentley might be the ticket. That is if money is no object. However if you are a pensioner and living month to month a good used car may do the trick. Saving thousands in depreciation a new car would have the minute you drive off the lot.
4. The Free Spirit
Maybe you don’t want to be tied down to car payments on a new vehicle and would like to travel the world without a care. Buying a good used car for cash can give you the freedom to roam the countryside and not be tied to strict maintenance requirements of a new car, while still providing necessary transportation.
Whether you decide to buy a new or used car, you should always do your research. There are many sites that will help you along the way to purchasing that great new or used car. It’s always a good idea to check insurance rates while you’re at it, they can fluctuate wildly depending on the make and model you choose.