In this day and age when money is in short supply, finance pundits will tell you to buy a used car. People will tell you the many disadvantages of buying one, and some can have a point.
Even then, some “experts” will call buying a new car the single worst financial decision you can make.
If you’re on the fence asking “Should I buy a new car,” there are many reasons why it’s a yes. Sure, used cars can be a great option, but here’s why you need to pick something brand new.
We have nine different reasons why buying a new car is your best choice. Read on to learn more.
1. Superior Cost Value
The first reason why you should choose to buy new is the cost. It sounds like something you might be skeptical of at first, and for a reason. The very reason that you’re buying used is because of the cost.
Yes, the average cost of a new car sits at around $30,000. That can sound like a lot until you consider the following expenses:
- Cost of diesel per mile
- Maintenance costs
- Insurance fees
Used cars often require a lot of repairs, parts replacement, and additional maintenance to keep them running. They’re also more susceptible to road accidents and this can significantly increase your insurance costs.
The value of your new car can offset this with its reliability.
2. Strong Resale Value
Car depreciation is the usual reason cited by financial pundits on why you never buy a brand new car. The truth of the matter is that vehicles in high demand will have high resale value. A good way to gauge resale value is by the list price.
If the new vehicle sells for a higher resale vs. a dealer’s list price, chances are, it’s in demand. You will see high resale value with very little depreciation. This can be due to quality or even a solid history of reliability across the entire model.
Of course, you should consider if you’re ok with depreciation in the long run. This can affect your car’s trade-in value over time, so it’s worth the consideration. If you plan on selling down the line, avoid these mistakes.
3. Higher Reliability Over Time
One of the best advantages of owning a new car is the reliability aspect. You know the entire history of the car, as you’re the first user of the vehicle. Apart from the unfortunate mistake of stumbling upon a “lemon” car, a brand new car assures reliability.
Buying used cars opens yourself to possible issues down the line. Sure, you can do your due diligence and have the car inspected. Even then, car wear is something you can’t deny.
Even 1-year-old used cars have an uncertainty of the way the owners used them.
Did the car get its miles from the city or the highway? Did the previous owner perform routine maintenance for the vehicle? Did the car participate in any recall programs?
When you ask, “should I buy a new car,” you need to consider the value of being the first user.
4. Newer, Better Technology
New technology in cars is among the fastest-growing techs in the world. In a world where you’ll spend at least an hour of your life in a car, it’s great to have the tech to help. It can make the drive more bearable for you and the entire family.
New tech in your brand new car can come in all forms and functions, like better entertainment options or improved gas mileage.
New tech in cars can even be something that helps reduce your carbon emissions.
Whatever it is, brand new cars can give you this choice.
5. New Car Factory Warranty
With a new car comes many creature comforts. One of these is the value of the new car factory warranty. When you get a brand new vehicle, you will get the full manufacturer’s warranty.
Why would you need this?
Most of the time, a warranty assures you that you don’t have to worry about issues. For the next couple of years, all you need to focus on is driving the car and enjoying its benefits — with the exception of general maintenance, of course.
If you buy a used car, you’re not likely to get a warranty. So if a problem slipped inspection and the issue arises, you’re out on your own.
With a new car, all you need is to bring it to the dealership service centers.
6. Superior Fuel Economy
As we said, many brand new cars provide better fuel economies compared to older models. The push toward greener vehicles means governments are looking for new tech. Much of the current tech helps boost fuel economy, making you need less gas for longer.
Governments are asking for better fuel ratings from petroleum companies. Cars are reaching record highs when it comes to gas mileage per gallon. Most of these go hand in hand with having a new car to take advantage of the current wave of laws.
7. Lower Interest Rates and Better Financing
While many used cars will be cheaper than brand new units, you need to look at the long-term. There are some financing rates that could penalize you through interest. Older cars can have absurd interest rates, but why?
New cars are less of a risk to lenders and can provide a big profit margin for them. This is the reason why incentives like cash rebates and low-interest financing only apply to new cars. You’ll even find financial institutions charging you an extra 1 to 2% if you have a used car.
8. Peace of Mind
With a new car, you have the peace of mind that you need. You don’t have to worry about your car breaking down during a long drive, or being injured in an accident.
As long as you’re in shape as a driver and you have a brand new car, you should be safer.
9. Freedom To Choose
Whether you’re buying a new truck or car, the biggest benefit is the freedom to choose. When you buy used, you limit yourself to what’s on the market. You likely won’t find the color or specifications that you want.
By buying new, you can specify everything that you want. This includes the color, size, and trim or price class.
Should I Buy A New Car? Yes.
Once you catch yourself asking “Should I buy a new car,” the answer should be yes. There are many benefits to buying new vs. used. While there are clear advantages to both sides, buying new gives you some of the best benefits.
Looking for more tips when buying a car? We have everything you need in our other guides here. Take a look and see which ones can help.