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New Car vs. Old Car: Which Challenges arise Due to the Old Age of a Car? Finance Articles | June 21, 2017
An old car raises various challenges such as dealing with high maintenance costs, an expired warranty, continuous depreciation and limited financing options. On the other hand, a new car becomes the worthy solution and provides a sound financial decision to the car buyer.
When you set out to purchase your next car Sebastian Poma Italy Jersey , it is a commonplace practice to pay extra attention to the condition of the car. An older model of a car requires more scrutiny as opposed to the newest car on the lot. The age of the car is an important element that numerous car buyers neglect while zeroing in on their available choices. Buying older cars raises a few challenges in the time span that it stays with the buyer.
Challenges a Car Buyer faces because of an Older Car
1) High Maintenance Cost
An old car comes with hefty maintenance charges. Regular repairs are required to ensure optimum functionality of the car. As compared to a new car that requires less maintenance, an older model is vulnerable to frequent mechanical breakage. While the purchase price of an old car is low, the regular maintenance costs increase the lifetime price of keeping such a car.
2) Expired Warranty
There is a good chance that a car model that is 9 years or older has run out of its warranty period. Any breakdown of the machinery of the car within the first few years will only add to your maintenance cost. In some cases, if the car is only a few years old, you can still benefit from a transferable warranty. However Sam Gaviglio Italy Jersey , a certified pre-owned car from a dealership is your safest bet in order to avoid an expired warranty.
3) Unavailability of Spare Parts
The older the car, the lesser the chances of availing spare parts. A new car not only comes with a warranty but also guarantees the availability of spare parts in the market. The older spare parts become obsolete as the new technology and updated features replace the older version of technology. Therefore, obtaining spare parts for older car models becomes a challenge.
4) Continuous Depreciation
Buying an old car means purchasing a car that has been depreciating ever since it was made. Purchasing an old car reduces your resale value. Previous wear and tear, new technology and major repairs are factors that reduce the resale value of an old car.
5) Limited Financing Options
An old car invites fewer financing options than a new car. Additionally, you may have to pay higher interest rates on the auto loan. A pre-approved auto loan works in the scenario of purchasing an older model of the car. It helps you to purchase a car well within your budget as you have prior knowledge of the amount of the loan.
The Bottom Line