Buying a New Car Vs. Buying Repossessed, Used or Pre-Owned Cars

Buying a new car can be interesting and exciting! Buy car wisely and practically! Do you think buying a new car is a good idea? Know where you can save a lot of money in buying cars. New or used cars for sale? Buying a new car for other people is a great pleasure and as a reward for their achievements. But, the question arise when it comes to saving money for a car. Which is more practical ways to buy car, buy brand new car or used cars for sale that usually can buy at a very low price? I think buying a new car is a good idea than buying old, used second hand car. Do you want to know the reasons why? Keep on reading and find out the main reasons why you should buy new car than old car.

It is true that used cars are very cheap. However, you should be careful in choosing used cars. Used cars might have a good looking exterior and interior. But, what about the mechanical parts of the engine, how would you know that the engine has no problem? What if the used car engine is good today and you will experience malfunctions after few months?

That is the disadvantage of buying second hand cars. You can save a lot of money when buying it but it can give you a headache or even a “pocketache” after few months. Unless you found a second hand cars that is REALLY in very good and excellent condition.

Is Buying a New Car a Good Idea?

Buying a new car is ideal and recommended if you will buy it in a cash to cash basis. If you will buy new car in a installment basis, you can’t save a lot of money in that way. You are making the bank (for a car loan) richer and richer!

Buying a new car can’t help you save more if you will buy it in a installment basis. Believe me, if you will just calculate the total amount of money you pay for a car (down payment and monthly amortization), you will noticed that the price of a car will increase of more than 30% to 50%.

Opinion: Buying a New Car Vs. Buying Repossessed, Used or Pre-Owned Cars

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Buying a new car is easy compare to buying second hand cars. The advantage of buying brand new vehicle is that you will save money for insurances and regular maintenance service fee.

But they are expensive compare to second hand, used, pre-owned and repossessed cars. Some people often preferred to buy second hand cars because they just want to fit their allocated budget for a car. I will prefer to buy a second hand cars then the rest of the budget will save or invest (in my opinion), but just what I have said, buying brand new car is great! But buying second hand cars is hassle, you need to check the engine, transmission, documents carefully, maybe today the second har you bought is working just fine but after few months of driving, you will noticed so many “troubles”. If you are buying second hand cars, do ensure to bring your mechanic with you, and make sure you will buy a car model later than 5 years and check the mileage of the vehicle.

When Buying a New Car is Recommended?

Buying a new car is recommended if you have enough cash to pay for it. If you will buy a new car, you are also making sure that the car engine has no defect especially if you bought a new car with a good brand name. Whether you are buying American car brand or Japanese car brand, the important thing is you are buying a new high quality car. Don’t buy new car because of popularity. Buy new car after you read reviews and feed backs from other car owners using your preferred car model.

Points to Remember when Buying a Car

• Do buy a car that fits your budget, if your budget is P500,000, do not look for a car with a price higher than your budget. Whether it is a second hand or brand new one, follow your budget!
• Do not force yourself to buy a car in instalment basis if you think your household monthly budget will suffer. So consider your your budget for other things like child tuition fees, utility bills, etc.
• When buying a car (whether brand new or used car), always check the specifications, prefer low fuel consumption. Even if you save money because you hunt for quality cheap car, your money will only go to fuels.
• Light colors of cars in study, are better than dark colors. Prefer white or silver color. Besides, light colors will help you more in preventing accidents. Other drivers on the road will easily notice light colors. And you are helping out the planet in reducing global warming if you will buy light color cars.
• Consider the usefulness of your car. Of course, do you think your money will be worth if you will buy 15 seaters than 2 seaters.
• When buying brand new car, ask for perks and rewards and even huge discount if you buy cash basis. And do not forget to shop around which bank offers low interest rates if you apply for car loan.
• When buying second hand cars, shop online or see the latest cars for sale posted in InvestmentTotal.com for we help many Filipinos look cheap but quality used cars. Compare the prices of your preferred cars and of course, do not just check the prices, check engine condition, mileage, body condition (exterior and interior if need major repairs), documents (insurance coverage and LTO registration)
• Buy a car because you and your family need it not to impress other people. Other people will buy a car to impress their neighborhood even though their finances will suffer because of car loan. Always remember that a car is not an asset, unless it makes money for you for rental services fees.

So, do you agree that buying a new car is a good idea if you have just enough money to pay for it? Let me know your opinion about this post. Share your comments below.