Whether you’re looking to replace your current car, or this is your first vehicle purchase, one of the first decisions that you’ll probably make is whether to purchase a new car or used vehicle. Because used cars tend to be cheaper, they often allow buyers on a budget to get a better car for their money. But is the more luxurious model, even if it’s used, the better choice? Or are you better off purchasing a car that’s brand new? There are different things to consider when weighing the pros and cons of each.
One option to consider is a certified pre-owned vehicle. Although you are buying a used car at a higher cost with this option, you also receive a warranty the same way you would with a new car.
Depreciation is the loss in a vehicle’s value over time and can almost be considered a hidden cost because it’s not something you’d have to deal with again until it’s time to trade in or sell the car. But if a vehicle depreciates thousands of dollars from the time you purchase it to the time you decide time to sell it, you lose that money. A new vehicle loses approximately 20 to 30 percent of its value the second you drive it off the lot, whereas depreciation on a used vehicle has little effect on the owner. Purchasing a used model will likely also mean lower insurance payments, thus saving you more money in the end.
If you are still on the fence about which direction you should go in, be sure to do a lot of comparison shopping and research before making any final decisions. A car purchase is a big deal, and it isn’t a decision that should be taken lightly and it isn’t something you’ll want to end up regretting months later.
Whether you decide to purchase a new car or a used one, Peachtree Financial Solutions may be able to help get you the cash you need. If you’re receiving structured settlement or annuity payments, you can sell some or all of them to Peachtree Financial Solutions and receive that money in the form of a lump sum. The money you receive from us can be used to help purchase your car. Contact us today to find out more and for your free quote!
Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.