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Should You Buy a New or Used Vehicle

written by: Marce•edited by: Donna Cosmato•updated: 6/29/2011

It may be difficult to decide on whether you should buy new or used. Read this article to find out the advantages and disadvantages of both.

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    Some people always buy new and some always buy used. It's a matter of preference and past history with either buying new or used. If you are considering buying new because you've had bad luck with used vehicles, you will find that there are disadvantages to buying new just as there are with buying used.

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    Buying a Used Vehicle: The Disadvantages

    You know that when you buy used, you are inheriting someone else's problems. If you are buying a relatively new vehicle with low miles, you may not have to deal with many issues. Just remember that people sell their vehicle because of some reason. Don't be afraid to ask what that reason is, the seller will probably not tell you all the problems with the vehicle but he/she may tell you that he/she is only selling it because he/she is trying to make some money to buy some other dream car.

    You might also want to consider that when you buy used, you don't receive the special finance rates as you do with a new vehicle. If you do end up buying used, it's best that you have a good amount of money to put down and a loan from your financial institution.

    You don't receive a full warranty on the vehicle if you buy used. You will receive a partial warranty if one still exists for it. This means that if something goes wrong with the vehicle, you are on your own.

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    Buying a New Vehicle: The Disadvantages

    Some people will tell you that buying a new vehicle is a bad investment. This is because as soon as you buy it and drive it off the lot, it loses appreciation. In other words, it's worth less than what you paid for it. This is depressing considering you may have a new debt for something that isn't worth that debt.

    New vehicles are nice, especially with that new car smell, but the newness wears off after a while. The problem with a new vehicle is that you've spent a lot of money on it and if you want to purchase another one (even a used one) you will most likely be upside down on it. This means that when you try to trade it in, you will have to owe money on it before buying another one because you won't get what you paid for it.

    Carefully consider which route is best for you when deciding on used or new. Consider your budget as well as your needs.