Consumers have a lot of concerns when purchasing their first car. Which make and model suit my condition? What features would be good? Which car fits your budget? If it takes time to ship due to a lack of stock, you can include used cars or certified used cars in the options. Then, what are the pros and cons of each new car, used car, and certified used car?
When buying a new car
Most first-car buyers will want to buy a new one. A new car has many advantages beyond simple superficial characteristics.
First of all, you don’t have to worry unnecessarily. You don’t have to figure out if the previous owner spilled Coke on the seats or how long it’s still under warranty. Also, the fact that there is a fixed price is also a big advantage. In the case of used cars, the price is often determined based on subjective judgment, so there is a big difference in price for each car.
In addition, because vehicle manufacturers competitively install safety and convenience features, new cars always perform best in the latest crash tests. For example, forward collision warning and automatic braking systems are already standard on many newer vehicles but are not readily available on older vehicles.
And if you want the latest tech features like wireless Apple CarPlay and Android Auto, a new car might be for you. In particular, wireless smartphone connectivity technology has only recently become more widely used.
Along with recent vehicle prices, the slightly increased repair cost is also a factor that cannot be ignored. A new car doesn’t have to worry about excessive wear or damage from previous accidents. This means you won’t have to make frequent repairs, which will save you money on unforeseen repairs.
When buying a used car
First-time car buyers generally look for cheap cars. Although used car prices have risen significantly in recent years, on average, used car prices are cheaper than new car prices.
It is a well-known fact that within a few years of owning a vehicle, a significant portion of its value is lost through depreciation. On average, a new car loses 20% of its value after the first year, adding about 10% of depreciation by the end of the 5th year. Conversely, it is possible to use this point to purchase the same car for less money.
Buying a new car can be seen as a bit of an adventure. Especially for newly designed or newly released models. On the other hand, since used cars already have reviews left by owners, you can decide to purchase them after verifying information about the car or market response.
When purchasing a certified used car
If you want to properly balance the advantages of a new car and a used car, a certified used car may be suitable for you. Many automakers offer CPO programs, and in Korea, manufacturers including Hyundai and Kia Motors have recently started counting down the certified used car business. First of all, certified used cars provide a certain level of reconditioning, quality inspection, and extended warranty.
It also usually places limits on mileage and lifespan, so older or overly mileage vehicles can be avoided. Recently, manufacturers such as Nissan and Honda have extended CPO coverage to vehicles up to 10 years old. In this case, it can provide a cheaper option for consumers who want an extra warranty when purchasing an older vehicle.
As mentioned earlier, a certified used car system can be an option that combines the safety of a new car with the savings of a used car. Of course, you will have to pay more than a typical used vehicle of the same age and mileage.