ALT-1 Should you Buy a new or used Car
In the matter of making a decision when purchasing a new vehicle, there are a number of choices to be made by the discriminating consumer. Should I by brand new, or used? Should I spring for extra accessories such as power windows and air conditioning, or bypass these conveniences to save a few dollars? Here is a brief guide to making such decisions.
It is common knowledge that a brand new car decreases in monetary value the second you drive it off the lot. The question you need to ask yourself is: are you buying the car for its monetary value, or are you making this investment to ensure that you have safe and reliable transportation in your travels? Whether you buy a vehicle new or used, it will inevitably decrease in value as time (and mileage) passes. Are you buying a vehicle with the intention of trading it in one day for another, or do you plan on driving it until the wheels fall off? If you do plan on trading in eventually, a new or slightly used car is the best choice.
Buying used vehicles can be risky business. Even with various resources available for finding out about a vehicle's history, there is always the possibility that repairs were made (either mechanical or cosmetic) which were paid for out of the previous owner's pocket, done in their back yard, etc. Services such as Carfax ARE useful tools when shopping for a used car, and should be used as such. But keep in mind that there is no true way of ever knowing every little detail of a car's life prior to it showing up on a used car lot. When shopping for used cars, I would highly recommend bringing along a mechanic, or even a friend with at least basic knowledge of auto care and maintenance. If this is not possible, don't be afraid to ask the dealer or owner if you can take the vehicle to your mechanic for a thorough evaluation before you make the purchase. If they have nothing to hide and are confident that the car they are selling is in good shape, this shouldn't be a problem.
Of course, all of this worry and hassle will be avoided if you purchase a brand new car. Whether you decide to buy new or used, there are many other important aspects to consider. What kind of warranty is offered? Many used car dealerships will only warranty a car long enough to meet state requirements. If the warranty is for six months and your engine seizes during the seventh month, you just might be completely out of luck and have to pay for the repair yourself or buy yet another car. Most new car dealerships will offer a variety of extended warranty plans (for a price) on both their new and used vehicles. I would recommend at least considering the purchase of this coverage, as I have personally seen such plans save consumers a bundle of money. As a certified auto technician who is fully capable of performing any necessary repairs, I still opted to add the extended warranty to the cost of my current vehicle. The version of this coverage that I chose only covers power train items (such as engine and transmission), as these are the most costly possible repairs on any vehicle. I also opted for a "gently used" vehicle, as this was the most feasible way of ensuring that I had something safe and reliable to drive while keeping my monthly payments within reason.
As for deciding whether or not to spend the extra money on all the "bells and whistles"; well, this is a personal decision. The truth of the matter is that accessories such as power windows and door locks, air conditioning, and navigation or entertainment systems provide an abundance of comfort and convenience. But keep in mind that the more elaborate these accessories are, the more there is to go wrong with them. Once out of warranty, electrical problems can be extremely costly to diagnose and repair. If you don't mind expending the effort to roll your own windows up or down, or taking the extra second to manually lock your doors, bypassing such niceties can save you money down the road.
When buying a brand new car, beware the "entirely new and updated" version of any vehicle. Car manufacturers are under enormous pressure to constantly upgrade and "improve" their product. Though technological advances open the door to the future of style and functionality of automobiles, it is usually best to shy away from brand new technology until it has been proven in the field, and all the "bugs" worked out. In this aspect, it is actually advantageous to look into used vehicles, as (and this is especially true with well known makes and models) they have already been tested and reviewed by a good number of consumers. I'd also recommend staying away from a newer used car with very low mileage. While it is common practice for people to by a car and then trade it in after twenty to thirty thousand miles, any vehicle that is pretty new and has ten thousand or less miles on it was most likely traded because the previous owner was unhappy with it. This increases the chance you also might be unhappy with that vehicle.
On many occasions, I have heard people acknowledge that they believe foreign cars are more dependable, but they choose to buy American to support our economy. This is absolutely ridiculous on at least two accounts: first off, as far as the automotive industry is concerned, the only economy is global. Foreign and domestic manufacturers constantly sell and trade technology back and forth, or collaborate to improve upon existing technology. Second, many foreign auto makers are currently having their vehicles assembled in the United States (Toyota is a good example of this; most of their late-model trucks, and some of their cars are built right here in the States). Likewise, some American companies are having their vehicles built abroad, and then shipped to America. Thus, there is absolutely no reason to base your preference upon the assumed origin of a particular vehicle.
Whether buying new or used, you are about to make a significant financial investment, usually of at least a few thousand dollars. When you are talking about such a commitment, it only makes sense to at least consider spending the few extra dollars to subscribe to some sort of consumer information publication. Consumer Reports online offers a comprehensive an unbiased review of almost any car you can think of. The subscription fee is well worth the money and aggravation it may save you down the road, and gives you the added edge of being somewhat educated about a particular vehicle that you might consider purchasing. There are also similar reporting agencies, as well as consumer forums which might give you some insight from a less technical standpoint. Research is (in my opinion) the most important step in the process of buying any vehicle, new or used. Take the time to do your homework before you even set out on the search for a vehicle, and once you find something you are interested in, take the additional time to compare it to similar vehicles from other manufacturers. You won't be sorry that you spent the time and money to do this.
Now that you've bought your new car, don't neglect to take care of it. Regular maintenance and keeping your car clean are the keys to getting the best use (and best trade-in value) out of your investment. If you have done your research and picked out the vehicle that best suits your needs and desires, you should have very little to worry about now. Just buckle up, drive safely, and enjoy the open road!
