Why You Should Never Buy A Brand New Car
When you watch television, you are bombarded by commercials from car companies and dealerships, exhorting you to take advantage of their latest great offer. With low rates or no down payment, they make it sound like an irresistible deal. Before you run out and buy a brand new vehicle, here are some reasons you shouldn’t buy a new car.
1.) New Cars Cost More
A brand new car will cost more than a similar model that is a few years old. This means you pay a bigger up front purchase price, if you’re paying cash. If you finance the car, a new car will mean a bigger monthly payment. The bigger purchase price will usually mean a bigger bill for sales tax too, depending on where you live.
That’s not the end of the extra expenses though. Your new car will probably be more expensive to insure too. Car insurance is based on the value of the car, so a new car needs higher insurance. Registration fees can also be higher for a more expensive new car. If your new car requires premium gasoline, also consider how much that will add to your fuel bills.
2.) New Cars Lose Value Too Quickly
The minute your new car leaves the dealer’s lot, it loses value, and it will keep losing value as long as you own the car. According to Edmunds.com, a new car loses 10 percent of its value the minute you drive it away. The first year you own it, the value drops by about 20 percent, and after that point, you can expect to lose about 10 percent of your value each year.
If you look at the car as an investment, it is obvious that a new car is not a good choice. If you buy a used car instead, you avoid the rapid drop in value that occurs the first year. Let somebody else buy the car new. They will take that loss in value, and you can be the beneficiary when you buy it from them later.
3.) Your Current Car May Last A Long Time
Many cars these days are built to last a long time. You can easily drive them over 100,000 miles, and some cars with over 200,000 miles are still going strong. The average driver in the US only drives about 15,000 miles each year. At this rate, it takes about 7 years to reach 100,000 miles. With a little maintenance work, you can be driving a car that’s 10 or 12 years old, that still has a lot of life left in it.
4.) You Can Get Used Car Warranties
One of the big advantages of buying a new car is supposed to be the warranty coverage. What not everybody realizes is that you can get a used car with a warranty too. If you get a car that is just a few years old, the original manufacturer’s powertrain warranty may still be in effect, as long as the car has not gone over the warranty’s mileage limit. Some companies also offer a special warranty on their used cars.
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