When the time comes to purchase new cars in UAE, you have a plethora of choices available to you. This crucial decision can drastically modify your finances over the next few years.
Reputed car reseller companies such as CarSwitch are of great assistance in these matters. Let's weigh the pros and cons of purchasing a used car versus a brand new car.
Advantages of a Used Car
The biggest merit of purchasing a used vehicle is that you let the previous owner take the massive depreciation hit on the car. You might be able to sell your vehicle for nearly the same amount you paid for it in the near future. It's possible to still find good finance options through your local bank. Since you aren't losing much money on depreciation, you can probably score a zero interest loan that you'd take on a new vehicle.
When you purchase a used car, it's relatively easier to save up and pay cash. It is also possible to review the Consumer Reports and choose a variant that has been ranked on the top.
Another merit is that depending on the variant, the insurance rates can be lower on a used vehicle as opposed to a new one.
Disadvantages of a Used Car
The biggest demerit of getting a used vehicle is that it may not be as dependable or you might have to spend more on repairs to maintain it. However, you do have the option of purchasing a Certified Pre-Owned car through credible companies like CarSwitch. As technology has evolved, vehicles have become more reliable and many models do not require repairs until they have done over 100,000 kilometres and are close to ten years in age. Additionally, you can sell it for a price very similar to what you purchased it for. You might want to set aside a little bit of funds each month to pay for car repairs that may arise.
Another disadvantage of purchasing a used car is that you might not get the colour or variant that you wanted. When looking for a used car, you need to be quite flexible and patient as you hunt for the right car.
Advantages of a New Car
The advantage of purchasing a new car is that you are getting a car that usually comes with the manufacturer's warranty. Most new vehicles will have very limited repairs in the first few years, so the prime focus is only on the maintenance of the vehicle. The auto dealership might also offer finance loans at a lower interest rate, which can reduce the total sum of interest you pay over the tenure of the loan.
Another advantage is that the new cars will be equipped with the latest technology, which means that you may find cars with lower emissions and a better gas mileage. You might be able to purchase a hybrid and reduce the amount spent on commutation each month.
Disadvantages of a New Car
The biggest demerit of getting a new car is that it loses value as soon as you drive it off the parking lot. A brand new car takes its biggest depreciation hit in two to three years. This usually means that you are throwing away a huge fortune that you will never see again. Financially, it is not smart to buy a new car unless you have money you are willing to lose.
Another demerit is if you purchase a car that is a new variant, there are chances of it being upgraded in a year or so. If you buy pre owned you can avoid that issue.
Everyone has to decide what the best option is for themselves. Regardless of what you decide you should ensure that buying the car won't put too much burden on your finances. Not only do you have to pick the make and model of your car, it's also essential to decide if you want to buy new or used cars in UAE. You should also do ample research to make sure that the model you select is reliable and performs well.