Buying a car is never a cheap or easy process and is often the second largest purchase a person makes after their home.
Deciding whether to buy new or used is often a key question for motorists looking to save a few bucks.
But while you might assume that a used car will always be cheaper than a similar one that’s new, that’s not necessarily the case, experts told CNBC.
In the past, it has always been best for used car hunters to go for a model that is only a year or two old and in good condition without many miles on the clock.
However, today’s market is anything but typical.
Car prices have skyrocketed over the past year as dealers receive less inventory and buyers compete for both new and used cars.
The war in Ukraine, an earthquake in Japan, more than two years of Corona, rising commodity prices, global shortage of chips … the list of reasons is long and they are all to blame for supply chains being caused to buckle “just in time”.
That means new cars are now well above the sticker price, and used models average about $28,000.
But if you can find the right deal, buying a new car could actually save you money in the long run, reports CNBC.
Because new cars have a guarantee, are in better condition and often have better financing offers.
Certified used cars are somewhere in between.
They usually come with the original warranty remaining and have been checked to be essentially good specimens. They usually cost a little more than regular used cars, but less than new cars.
Buying from a private seller can also benefit your wallet.
Individuals tend not to charge fees and other additional fees, and the price itself will usually be lower.
However, this route means digging through eBay, Facebook Marketplace and so on and driving to someone’s house. Plus, you’ll likely have to pay cash and do your own paperwork.
Like any other part of buying a car, the best buying option will vary from person to person.
When you can buy a car outright with cash, you don’t have to worry about a monthly payment and can save thousands by not having to pay interest.
But for some people, this just isn’t possible as they may not have the necessary cash.
Leasing is another option, but at the end of the lease, you don’t own the car, you have to return it.
In addition, charges may apply if you drive more than a certain amount and if the car is excessively worn. You can also forget about modifications of almost all kinds.
If you take out a loan, you own the car once it’s paid off, but the monthly payments tend to be higher. And you’re still on the hook to pay off the loan even if the car is written off in an accident before the repayment is complete.
GAP (Guaranteed Asset Protection) covers your back if you have a loan and owe more than the car is worth.
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https://www.the-sun.com/motors/5099663/new-used-car-buying-expert-cost/ I’m a car expert – why buying new over used can save you more money and what to look out for