The Advantages and Disadvantages of Buying a New Car
In this section, we list the advantages and disadvantages of buying a new car in an easy-to-follow format. When it comes to determining whether or not a new car is right for you, this advice can help you decide.
Can't decide if new or nearly new is right for you? Take this advice along for the ride.
The Advantages of Buying a New Car
A better carAside from fluke manufacturer defects, the bottom line is that new cars are better than used. Not only do they last longer and offer more value when it comes to service and maintenance costs, you know their history and the care they've received because, well, you're the first owner. Neglectful care in the early years of a car's life can have long term effects on its performance and value.
A better warrantyNew cars usually always come with more comprehensive warranties for longer periods of time than used cars, even if the used car is certified. In fact, some manufacturers offer new car warranties as long as 10 years or 100,000 miles. Wow!
A better loanOftentimes, new cars come with attractive financing programs and special interest rates offered by the manufacturer, of which you can take advantage. If you opt to secure an auto loan from a bank or a credit union, you'll probably pay less for a new auto loan versus a used one.
A simpler processLet's face it. Buying any car, whether it's new or used, isn't exactly as fun as Disneyland. But buying a new car is easier than buying a used one — in many cases, much easier. New cars are simple to locate, easy to price and easy to build with the equipment you want. Most importantly, you're not inheriting somebody else's headache. You know what you're getting...and that's about as easy as it gets.
The latest and greatestFrom high-tech gadgets to advanced safety features, new cars offer the latest and greatest options, equipment and styling. If driving the crème de la crème is important to you, you'll have to buy new.
The Disadvantages of Buying a New Car
A bigger price tagNew cars cost more than used cars and if you're financing, you'll probably pay more in monthly payments depending on the loan.
A bigger insurance premiumNot only do new cars cost more, they're usually always more expensive to insure.
A bigger taxIn addition to a bigger price tag and higher insurance costs, tax rates are typically always higher on new cars versus used.
A really big depreciation hitThe minute you drive a new car off the lot, you realize a hefty depreciation hit and your investment — in this case, your new ride — rapidly depreciates within the first few years of ownership. That means you get hit the hardest, as the original owner, when it comes to depreciated value.
No record of reliabilityBrand new cars might smell great, but there's no way of knowing how reliable, or unreliable, they'll turn out to be. Even though buying a used car brings with it a host of uncertainties, buying a new car, especially a new model introduction, can also bring uncertainty.
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