We have all been there. We drive by the same dealership on the way to work and notice a stunning new vehicle on the lot. Eventually, you cannot help but go in for a test drive. You adore the cleanliness and new car smell. Something you have not experienced in years or may not have ever experienced. Fiscally, things are going well for you. You have more than enough to budget for a car or your old one is starting to rack up high mileage. Perhaps you just like something fresh every few years. Buying a brand new vehicle is exhilarating and I am all for “treating yo self”. However, before you pull the trigger on that new car, please be so kind to consider the pros and cons.
BUYING A NEW CAR – PROS:
- Completely Under Warrantee – All new cars have factory warrantees ranging anywhere from 3-10 years. Having the peace of mind that nothing will come out of your pocket if something goes wrong is priceless.
- No Need to Worry About Accidents or Previous Owner – A new car will add further peace of mind because it does not have any driving history. You do not need to worry if the previous owner may have beat the crap out of the car either.
- Latest Technology – Over the past 5 years, cars have become increasingly sophisticated with technology and convenience. Stepping into a new car will have a surprising amount of features standard. Where as just a few year ago, you would have been forced to pay even more.
- Most Robust Safety Features – Along with in cabin technology, safety is something that is increased every single year. Thanks to the Insurance Institute for Highway Safety (IIHS) the bar for safety is increased on a regular basis. Keeping manufacturers on their toes.
- Better Fuel Economy/Performance – As innovations surface every year, manufactures find new ways to increase horsepower and fuel economy without you noticing any compromise in day-to-day driving. The newest cars will have outstanding gas mileage and strong acceleration.
BUYING A NEW CAR – CONS:
- Cars Are Becoming More Expensive Every Year – The average price of a new vehicle is well over $35,000 due to safety and fuel economy regulations. Also, manufacturers must stay competitive in a super cut throat market. All causing prices to increase dramatically.
- Depreciation – Like any other vehicle, new cars face depreciation. The downside is that new cars suffer the biggest loss in depreciation. You probably hear many people say, “you lose THOUSANDS the moment you drive off the lot.” Unfortunately, they are correct. Consider purchasing a car that is 2-4 years old. Most of these cars were leased so you can find one with relatively low mileage. You also still get a strong balance of safety and technology even if the vehicle is a few years old.
- Damage – Adding another dent to a plethora of dents will not bother me on a used car. However, if you are the one to put that first big scratch or dent in your new car, you will be extremely crestfallen.
- You Are A Guinea Pig – The truth hurts, and when you are purchasing a newly redesigned car you are the test subject. If all of the technical innovations are newly implemented, you are essential the manufacturers guinea pig. All manufacturers rigorously test their vehicles before selling them. However, sometimes problems will not be noticed until there have been thousands produced. If you have an all new vehicle, do not be surprised if you have to take a few trips to the dealership for recall notices.
- You May Be A Target – I know, this sounds bizarre and please hear me out! I remember back in 2014, my mother purchased a brand new Camry SE Sport. The SE Sport has the most opulent wheels in the Camry lineup. They were big pimpin’, 18 inch 5-spoke, gun metal alloy rims. On one random morning she walked out to her car on bricks. Someone stole the wheels off of her baby! Keep this in mind because this is far less likely to occur on an older vehicle.
So how do you feel about buying a new car?
