The decision as to whether to buy a new or used car for most people is a question of their budget. Most people when setting out to buy a car have a rough idea of the kind of thing that they want already, and the price is often the secondary concern. If they have enough they will more often get a brand new car and if they don't have as much to spend then they will get a used one. There are other factors that some people consider of course, things such as the rapid depreciation of new cars, or the length of time it will take them to pay for the car entirely etc.

It is a widely known fact that as soon as you drive a new car off the sales lot its value is halved immediately. This of course makes some people less likely to buy a brand new car for that very purpose. Especially when they can pick up a second hand car the same model from the year before for a fraction of the cost. Ad other than aesthetics often the price is the only difference between newer used cars and brand new ones anyway.

First time car buyers will always tend to buy second hand cars for a few reasons. Firstly they don't usually have the money for a brand new car as they are in school or college and aren't earning much just yet. Secondly they are usually only using the cars for commuting back and forth, so are more concerned with the fuel consumption than looking good while driving it.

There are some people on the other hand who will go out and buy a new car every single year. Very often the same model as well. This I think is partly an image thing and them wanting to show that they have money to spend. Although this kind of thing really is just a waste of money on their part because a new car certainly doesn't need to be traded in after just a single year.

Buying a new car you do have the security that it is under warranty and that it will start first time. With some older cars the parts can start to deteriorate fairly quickly, particularly if they have high mileage. Although whatever repairs you might have to pay for are likely to cost a lot less then the extra getting a new car would have.

Some people are scared of used cars because they think that they will be cheated and will buy something that will fall to pieces after a few miles. However there are plenty of reputable companies that sell used cars that give everything that they sell full mechanic checks before they sell them on. Being sold a piece of junk is more likely to happen if you buy the car from someone who isn't an actual dealer. Or if you have just seen the car on the side of the road with a home made for sale sign in the window.

So overall buying a new or used car comes down to personal preference rather then either being the right option. I would say that a brand new car isn't necessary unless you have a lot of money spare and can easily afford it. Otherwise I would be more inclined to just buy the same car but a couple of years older, where I would save several thousand dollars for what is basically the same product.

Learn more about this author, Scott Heritage.
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