Buying a car is an important step in an individual’s life. It is a project for which preparation requires enough time. Most often, a credit must be contracted to finance his car. If sometimes, for reasons of budget, the choice of a used car is self-evident, it also happens that it is difficult to decide between new or used car because of the advantages or disadvantages of a credit for each type of car.
Why opt for a new car?
It is undeniable that a new car makes everyone dream nothing for its flashy appearance, brilliant paint and equipment still in top form. The choice of models is also much wider for a new car. But that’s not all, because a new car is often accompanied by multiple financing offers and a discount if the buyer has an old car, which can be a great help in terms of funding. Financing offers may come from a subsidiary of the car brand or from a financial institution. The use of a credit rather than a personal loan to finance a new car is more easily possible than for a used car.
A new car also gives the opportunity to be resold at an acceptable price a few times after its purchase which again, is advantageous to benefit from a personal contribution if the holder wishes to change vehicles. Credit is also granted by financial institutions at lower rates than used cars. The rate will also tend to climb depending on the age of the vehicle. It is worth remembering that a new car comes with a large insurance budget.
Why opt for a used car?
Used cars are not all wrecks, since a used car has been well maintained and has few miles on the counter, it is likely to be a good deal. If purchased from a professional, it also gives rise to attractive funding opportunities. Opting for a used car also means taking out a credit of a smaller amount and therefore a shorter duration, which means taking possession of the car definitively more quickly. But borrowers often have no choice but to use a personal loan when they want to finance a new car. Establishments that provide auto credit for the purchase of a used car are relatively rare. The personal loan can have many disadvantages in terms of its duration but also because if the sale does not go as planned, the borrower must still pay the amount borrowed.
It is also possible to afford a more equipped car without paying a fortune if the buyer opts for a new used car. The possibilities of reselling a used car quite new can also be interesting. Buying a new used car can therefore represent a good compromise between the new car and the used car both in terms of maintenance and insurance costs and for its financing.