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CAR FINANCE ADVISER

Let us recap on the advantages and disadvantages of buying a new car vs a used car in Lesotho.

Advantages of Buying a New Car   

  • Factory warranty
  • No previous owners (and unknown accidents or mechanical incidents)
  • Low financing rates usually available
  • Few maintenance costs for 2-3 years

Disadvantages of Buying a New Car

  • More expensive
  • Immediate depreciation
  • Unknown reliability for model year
  • Higher tax and insurance costs

Advantages of Buying a Used Car

  • Less expensive
  • Slower depreciation
  • Lower tax and insurance costs
  • Reliability data available from Consumer Reports, etc.

Disadvantages of Buying a Used Car

  • Unknown accident and mechanical history
  • Higher financing rates
  • Higher dealer markup
  • Higher maintenance costs

On paper, the new vs. used debate seems fairly balanced. Financially, however, one can usually prove that buying used will save you some money – even when markups, interest rates, and maintenance costs are factored in.

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