When you are in need of a vehicle, one of the first questions that come to mind is whether you will look for new cars or choose a used car. Which one is the better option? Which one is right for you? Everyone is different and the choice to buy new or used can vary. Let’s look at what you need to consider when you are deciding whether you should buy a new or used car.
What Is Your Budget?
One of the first questions to ask is about your budget. How much do you have available for a vehicle? This has to go beyond merely the cost of your down payment if you are considering buying new. There are plenty of taxes and fees associated with buying a new vehicle, not to mention the cost of maintaining the vehicle, insurance, registration, and more. New vehicles are expensive all year long, even though they might not need as much maintenance.
When you are buying a used car through an auction, you can often get the vehicle for less than the price of what your down payment might have been when you buy a new car for sale. This means quite a bit more in savings, naturally. However, you do have to consider the fact that you may have to do some repairs to the vehicle before you can get it registered, insured, and on the road.
The Depreciation Problem
What is the most expensive part of buying a vehicle? It’s actually the depreciation. As soon as you drive that new car off the lot, it loses value. In fact, it can lose between 20% and 30% of its value. Over time, the value of the car declines further, so you are technically losing money on a new vehicle, and this is simply something you will not have to worry about when you choose a used vehicle. When you buy used, someone else has already eaten the depreciation for you.
It’s important to understand that used cars can have their issues as well, and this generally comes down to maintenance. A used vehicle could require substantially more repairs and maintenance than a new vehicle.
However, the bulk of the repairs will generally take place when you first buy the vehicle from the auction. After that, proper maintenance should cut down on the actual amount of repairs that you will have to face. However, it you want the least hassle, then choosing to buy new cars for sale may be a better option for you.
The Cost of Insurance
Insuring a new vehicle is generally more expensive, as you will need to have higher levels of coverage for the vehicle in most cases. Used cars will be able to get by on the most basic and cheapest insurance plans if that is what you prefer.
However, when you are buying from a car auction, keep in mind that many of the vehicles are salvage titles, and this can make insurance a bit trickier. You will need to rebuild the vehicle, register it, and then get it insured. Many insurance companies will only offer basic insurance coverage for these types of vehicles.
If You Buy Used, Where Should You Go?
There are several options if you want to buy used cars. You could go through a used car dealer in your area and pay cash for the vehicle. You could also finance the vehicle. This will still leave you with a monthly payment, although it will be lower than a payment on a new vehicle. One of the other potential drawbacks of buying through a used dealership is the fact that the selection is often limited.
You can buy through private sellers online, or you could choose to go through an online auction instead. If you are buying from an auction, you will find that it’s a good way to find a greater selection. The price of the vehicles tends to be quite a bit lower going through an auction, and you can stop bidding whenever you feel that the price is getting too high. By saving money going through one of these auctions, it becomes easier to afford any repairs the vehicle might need.
When you are buying new cars, it is common knowledge that you have to use a dealership to make the purchase. However, that is not necessarily so. Although auctions that sell new cars can only be accessed by people holding dealer licenses, there is a way around this restriction.
You can hire a proxy bidding company to use their own dealer license to bid on certain online dealer auctions on your behalf. This way you can have access to new cars at substantially lower prices than you would find at a dealership.
In the end, you really need to do what’s right for you when it comes to getting into a new vehicle. Consider your budget and your needs before you start looking.
Explore our Vehicle Auctions, as well as finding more information about How These Auctions Work.