Are there any good reasons to buy a new car? As a money-saving strategy, it is generally better to buy a used car than a brand-new one. Used cars are less expensive, not the least of which because they do not have the inflated new car premium. But price aside, there are at least five reasons to buy a new car rather than used.
Best financing deals
We often hear and see of incredible car financing deals – 0% down, 0% interest, or something close in each case. But the rub here is that these preferred financing packages are generally reserved for brand-new cars only.
It is easy to see why dealers will make such offers for new car buyers or people who lease new cars rather than to those buying used. For one thing, dealers are trying to move their inventory of new cars off the lot, and one of the best ways to do this is through attractive financing.
But it is also easier for dealers to offer preferred financing on new cars. Because the cars are new, and of higher value, they represent better collateral for the loans. It is also likely that new cars tend to attract higher income buyers with higher credit scores. The dealers also have access to below market financing by the manufacturers, who are using them as incentives to sell more cars.
This isn’t to say that you cannot find advantageous financing packages on used cars, only that it is far more common when you buy a new one.
Of course, the best financing deal of all will be had if you can buy a car without a loan, however not all buyers are in a position to do this.
A new car will last longer
All things being equal, you can expect a new car to last much longer than you would a used car. If properly maintained, a well-made new car can go 10 years or more before you start having major repair issues.
With a used car however, you can start having major repair problems early on. Much will depend upon how old the car is at the time that you buy it. If the vehicle is at least five years old, it is possible that you will face major repairs almost immediately. There’s no way to know how the previous owner drove the car and what impact his or her driving habits may have had on the wear and tear on the vehicle.
It is also entirely possible that the car was sold precisely because it was already showing a pattern of extensive repair requirements. That is an issue that you generally will not face if you buy a new car.
Latest safety equipment
For the safety conscious, you can’t beat a new car. It’s not just that all the safety equipment in the car is new, although that is a factor, but also because it is the latest technology available.
Since technology is constantly evolving and improving, the only way to get the best safety equipment is to buy the latest vehicle. This can also help you to save money on car insurance, since auto insurance companies will typically give you discounts for certain safety equipment.
Improved fuel efficiency
Even cars at extremely high levels of fuel efficiency will decline over time, causing you to consume more fuel. As the vehicle ages, parts begin to wear out and as they do they don’t get the same efficiency they once did.
When you buy a brand-new car, not only are you getting the latest technology on fuel efficiency, but since the vehicle is new, that efficiency will be at its peak.
Less costly maintenance
One of the most significant benefits to owning a new car is that the cost of maintenance is lower, at least for the first few years. You do have to stick to the manufacturers maintenance program, just as you do with use cars as well. But since the vehicle’s new, you won’t be in the repair–and–replace cycle that commonly develops in cars that are more five years old.
This can save you $1,000 or more each year during the first few years that you own the car. And not only will it save you money, but the vehicle will also be more reliable in that it will spend less time in the shop.
If you tend to drive long distances, especially for travel, you‘ll be better off with a new car rather than used. In addition to the enhanced fuel efficiency and the most up-to-date safety equipment, the car will be less likely to break down while you’re away from home (where car repairs will be even more expensive!). A new car provide an increased level of confidence to the person has to drive long distances on a fairly regular basis.
Have you ever purchased a brand-new car for any of the reasons above, even though it might have been less expensive to buy a used car?