Car shopping comes with an array of available choices. We must decide which model we want and whether we want a new car or an old one.These decisions can make a significant change in our finances over the years. Buying and selling your car is not a piece of cake. We the best car dealers in UAE, bring you the ultimate guide when buying a new or used car!
Positives of Buying New Car
With their curb appeal and status symbol, new cars are always appealing to the eyes. It advantages include the following:
New cars come with a warranty that covers almost every damage, making it more reliable for a new user.
With a new car, you do not have to worry about how the vehicle was treated before it was bought. The most obvious, the car isn’t used which means that there won’t be any smell or stains, and no visible wear and tear.
Low Interest Rates
Along with the cosmetic benefits, new cars have the potential that the banks need when they offer to finance at a lower interest rate, which reduces the interest payment over the life of the loan.
Moreover, new cars come with the latest technology. New cars of this generation are environment-friendly as they produce less emissions. They have a better gas mileage and constantly evolving navigation and multimedia. New ones are also fuel efficient and they are able to pick peed very smoothly.
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Negatives of Buying New Car:
The car is unpacked before your eyes, however it also has some disadvantages you need to keep in view while buying a new car:
Buying a new car is nothing but an opposite of being cost-effective. New cars cost more up front and depreciate in value more quickly. Most of the value is lost in the first few years of ownership. This means that new cars are bought at a retail price but as soon as they are in ownership, their value depreciates. The instant loss is approximately 15% to 20%.
New cars have higher insurance costs due to higher replacement values and payment of service fee is mandatory for the consumer.
Notjust expensive than used ones, the sales tax imposed on new cars is more than that of old cars; they have the latest technology and that’s how their sales taxes increase too.
Positives of Buying Used Car:
What else that you can do is buy a used car. It comes with its own pros and cons. To start with, here are some advantages of used cars:
Despite all of their repair issues, used cars can always be bought at a lower price and easily modified according to the consumer’s need, still costing much less than buying a new car.
Used cars can be sold at the same price they are bought and local banks can provide you with good financing options for the car. Plus, no money is lost on depreciation due to which you might get a zero interest loan. Also, insurance rates of used cars may be lower depending on the model of the car you buy.
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Negatives of Buying Used Car:
Old cars come with their own set of cons; here are few to mention:
When it comes to repairs, old cars are not as reliable as new ones. If you purchase a three year old car and sell it in five years, you will not have to do any major repairs thereon. Plus, you will sell it at a price very near to what you acquired it for. However, if you are buying a car for domestic use, selling it would not be an option.
Another disadvantage of getting a used car is that it requires a lot of time and patience to find the perfect one with a good history and mileage. Plus it is hard to find a good used car at an ideal price.
Buying a car is a very significant financial decision that takes a lot of thinking and research. It can be quite overwhelming but we are relieved once we finally get the perfect car for ourselves. Though the decision varies between individuals, here are things that can help you decide.
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To sell your car in UAE, visit www.carswitch.com