The task of deciding whether to invest in a new car or buy a used one can prove to be quite daunting. Also, the various drawbacks and benefits of buying new vs used cars can make one wonder which option to go with. Whether you are planning to purchase the latest car in the auto market or a used car at the dealership, there are few factors that you should consider to get the best benefit out of your money. Listed below are the top 5 factors to consider when buying new vs used cars.

1. Purchase cost
Before setting your heart on a particular car, you should check the vehicles’ purchase cost. The cost of ownership of a new car can burn a hole in your pocket. Meanwhile, the lower cost of a used car makes it a great option. Either way, the decision of buying new vs used cars should be based on your budget. It is wise to consider your finances before investing because exceeding the budget may land you with bad credit.

2. Insurance costs
The second big investment that you should consider before finalizing on a particular car is the insurance cost. The insurance premium for a new car is higher for obvious reasons. Meanwhile, it costs fewer dollars to insure a used car. Check with the insurance company to determine the insurance cost for both new and used cars, and compare the costs before the final purchase.

3. Pre-purchase inspection
If you are looking to purchase a used car, then it is crucial to get a pre-purchase inspection. Check with the dealership to find out if they permit such inspections before finalizing a deal. A pre-purchase inspection will give you an idea about the car’s interior and engine. Have a mechanic take a look at the car and share his insight with you to find out if the vehicle is in good shape and gives value for money.

4. Features
When buying new vs used cars, buyers should consider the features of the car. While new cars give you a say in the type of interior as well as exterior features you add, used cars do not give that freedom to the owners. However, it is not difficult to find used cars with the latest features. From the stereo system to the navigation system, check the features before deciding on a particular car.

5. Reliability
The cost of maintaining a car depends on how reliable it’s internal and external systems are. A reliable used car would run smoothly, while an unreliable one may add to your expenses with its costly repairs. For obvious reasons, a new car is far more reliable than a used one. However, at times you can also get a highly reliable used car.

From the cost of the purchase to the reliability feature, there are plenty of factors that you should pay attention to before deciding whether to invest big bucks in a new car or get a budget-friendly used car.