Most people dream about owning their own car. But before that can happen you need to get a job and save some money so that you can pay it off more quickly. Then you have to decide on the type of car that you can afford, rather than the one you want. While you can dream about your ideal car, it is best to settle for something cheaper that you can afford. Then if it gets a few dents it will not matter quite so much. When buying a car for the first time you need to consider if you should buy a new or a used car. Lately, the cost of new cars has surged upwards causing many people to opt for used cars although there are many incentives such as low interest payments and rebates from manufacturers of new vehicles. With the availability of the internet it is not difficult to find incentives on new cars or savings that can be made by buying a used car. Despite the fact that there are choices to make when buying your first car, these choices can be narrowed down to two factors. The first is your reason for buying a new car and the second is a question of affordability. A used car will be considerably cheaper in comparison to a new one although this is a gamble and the benefits of a new car are many, there are of course advantages and disadvantages on both positions. When you consider buying a used car, the history of the car is of utmost importance because that is
what will determine if the car is worth buying or not. There are many vehicles that have been in an accident and when buying a used car it is important to know if this is the case or not. The issue of ownership is also quite important and if you are able to determine who or how many people have owned a used car before, this will go a long way in helping you decide if you want to buy it or not. Most cars have a record of maintenance and you can ask the owner to provide that for you. And while a record of a vehicle's maintenance might not be 100% accurate, it is also possible to get validation by examining the used car history's records through its Vehicle Identification Number (VIN) which you will pay a fee for. The VIN will give you inspection reports, accidents the vehicle may have been involved in, odometer reading, previous usage for example if it was used for rental or leasing purposes, together with many other details. The greatest advantage of buying used is the savings that will be probably be instantaneous and its insurance on it will be cheaper than a new car. In the case of a new car, expect a 20 to 30% loss in value in a year. The advantage of buying a new car is that financing for new cars will always be better than that of a used car with some offers as good as 0% interest financing which is not easy to find for used cars. Another important aspect about buying a new car is the maintenance expenses involved. With a new car, you will not be forced to spend on car maintenance expenses in a while and you can also take advantage of the warranty that will cover your new vehicle for several years when you buy a new car.
Such warranties may include mechanical failures and except for oil and filter changes, you will not have to experience many other expenses. When you buy used cars, the time remaining on the manufactures warranty decreases and it is more likely for you to have expenses related to repairs and this might lead to you spending much more on the used car in the long run than you would have spent on the new car. One factor that should also determine your choice of car whether new or used is your price range. What are you willing and able to comfortably spend for a vehicle? Because most people will need to borrow to buy a car, it is important to consider what you are actually able to afford. Most people need some kind of financing when they go to buy a car. If you need a loan, try to avoid one from the dealer as the interest rates on dealer finance are usually higher than other loans.