Are you in the market for a “new to you” car? Is your current car costing you more in repairs than you would like and you want something more reliable? If you are trading your old car for a new or late model used car, you have some factors to consider before making your decision. Both brand new cars and late model used cars have their own distinct advantages, but the new trend in the industry is purchasing brand new over used and having a better car for around the same amount of money.
Now, you might be saying that “Used cars cost less” or that “Used cars have lower insurance” and while this might be true, the cost of owning a new car is becoming closer to the cost of purchasing a late model used car and this has many new car buyers confused.
We have always been taught that a newer used car is a better deal than a brand new car, so why the sudden shift in thinking? Let’s take a closer look:
Here Are 7 Reasons You Should Buy A New Car Instead Of A Used Car
Cost- yes, the initial cost of a new car is more than that of a used car, but it is the cost of ownership that we should be looking at and that is much lower for a newer car.
Reliability- new cars are typically more reliable than used cars and they usually come with an extensive warranty that can save the new owner a lot of money on repairs.
Less Money Down- when financing a new car, you will find that you will need to put less money down as a down payment. This is because of the resale value of the car and the fact that the bank can recover much of their loss if you default on the loan.
Better Financing And Interest Rates- when purchasing a new car, you will find that interest rates are often lower and you will get better financing options. This becomes even more important if you opt for a longer term loan.
Better Resale Value- new cars do depreciate, but they often have a better resale value than a used car. If you decide to sell your car within the first 5 years, you would get much more for it depending on the make and model.
Insurance Rates- insurance rates are lower for a new car when compared to a used car of the same model or style.
Improved Fuel Economy- most new cars have to meet strict fuel economy guidelines and that can save you money. A fuel efficient car will use less fuel and you might even get a tax incentive for purchasing a fuel efficient or hybrid vehicle.