Whether you’re new to car buying or looking to trade up, buying a car can be quite a dilemma. We put together a few of them for you in the hope that it might save Ag Workers Insurance customers a little cash. Whether you are thinking of buying a brand-new car or whether you want a second-hand one, our short guide can help you make the right decisions.
New or Nearly New?
Let’s start with the basics. When buying a new-to-you car, you buy a brand new car straight from a dealer, you can buy used from a dealer, or you can buy them second-hand from another party. There are pros and cons to each option, which we have gone into in detail below. Let’s look at the first decision you will make when you come to pick out a new car.
Buying Brand New Cars
Buying brand new cars is a good option for those in regular, secure employment. Not many people have the cash to buy a new vehicle outright so you may need to take out financing to afford the costs. Usually, car loans are repaid monthly, and you will eventually own the car. There is a high chance you will sell it on before you pay it off simply because of the depreciation aspect of vehicles.
The Pros of Buying a Brand New Car:
- You can take advantage of warranties.
- There is less maintenance because of less wear and tear.
- You can usually test drive before you buy.
- You can return it if it is faulty.
- Insurance premiums are likely to be lower.
- You will find a better choice of models in one place.
The Cons of Buying a Brand New Car:
- New cars come with a high price tag.
- You will never be able to sell it for what you paid for it.
- Some vehicles depreciate much faster than others. (If you don’t want this to happen to you, Google “2020 best car retain value” or something similar.)
- You may need to negotiate with a salesperson.
What About Buying a Second-Hand Car?
Buying an already used car is an alternative method of getting yourself on the road without the high price tag. Arguably though, this comes with its own set of problems. Even this depends on how you buy your new car, however. You can buy a used car from a specialist used car dealer, in which case you will gain all of the benefits above – but it will cost more than buying from a third-party seller.
Buying From a Third Party Seller
Buying a car from a newspaper or online ad, currently, the Facebook Marketplace is one of the trendiest (and easiest) places to pick up a second, third, or even fourth-hand car. There are several other places where you might find adverts for second-hand vehicles to buy, some of these are as follows:
- A website, such as autotrader.com (see this article from Digital Trends).
- Your local newspaper.
- Social Media such as Facebook Marketplace.
- Adverts in your local area.
Sometimes you even notice cars for sale when you are out walking around!
So, is it worth it to buy a used car from a third-party seller? You will save much money, possibly even thousands of dollars – but with a used car comes higher maintenance costs, a higher chance of having to replace parts due to wear and tear, and more mileage on the clock.
We highly recommend getting a Carfax report so you can see further details behind the car… how many times it’s been sold and re-purchased and even service records.
It truly depends on both the model of the car and the owner who is selling it. A used car may have been serviced every year, and safety checked right before it was sold. It might also have never had a service and not have enough coolant in the engine to get you home. You can read some horror stories about what could go wrong at Popular Mechanics.
Pros of Buying a Used Car From a Third Party:
- You will get a lower price than any dealership will offer you.
- The owner may be able to tell you when things were last fixed/maintained on the vehicle.
- They will probably come for a test drive with you – if they don’t, then don’t buy.
- You are not likely to need finance, and if it is your first car and you have been saving, you could probably already afford it.
- It can get you on the road there and then without lengthy waits for financial approval. You are also not contractually rebound to repay every month if you pay outright.
Cons of Buying a Used Car From a Third Party:
- There are no warranties and no guarantees. Most cars are sold as ‘as seen,’ which means if you drive it down the road and it breaks it is your problem, not the previous owner’s.
- You will need to pay for it all at once.
- They come with potentially very high mileage.
- It will not be in perfect condition.
There are two ways of looking at some other points about buying a used car. For example, the fact that it is not perfect means you will be less worried about scratching or denting it. Likewise, if the inside isn’t pristine, you will not be afraid to eat or drink in your new car. All of these points are worthy of consideration.
What About Insurance?
Once you have purchased your new car – whether it be brand new or used – insurance is the next step. If you are looking for fair and affordable rates for car and vehicle insurance, then contact Ag Workers Insurance today to get started.
Get in touch now, and let’s get you on the road!