I’ve already shared 10 Reasons to Buy a Gently Used Car and 10 Reasons to Buy an Old Clunker, but there are just as many reasons to buy a brand new car. I know some people have strong feelings one way or another, and that’s fine!
True, you’re probably not going to save money by buying a new car. But at the end of the day, I’m convinced that you get what you pay for. So as long as you only buy what you can afford, buy what you’re comfortable with and what fits your needs and wants the best.
1. A New Car Comes With The Best Warranty
Newer used cars often come with warranties as well, but unless they are Certified Pre-Owned the warranty usually shortens when it gets transferred to a second owner. And if it is Certified Pre-Owned, you pay a premium over the market value.
2. You Get The Very Latest Features
Often there’s no difference in features between a 2-year-old car and a brand new car. But every so often, car manufacturers roll out big changes to a product line, usually with new features and a car redesign. If you really want those features now, you’ve got to buy the new car.
3. Especially on a Smaller Car, Depreciation Isn’t as Bad as You Think
Depreciation is typically 15% in the first year. On a car that retails for 15,000, that’s only a hair over 2,000. That might still sound like a lot, but it’s not much more than what a two-year-old car would depreciate.
4. Dealer Incentives Can Further Reduce the Price
Often dealers have incentives that apply to any new car purchases. Often these are relatively insignificant ($500 or so), but if you happen to qualify for 3 or 4 of their incentives, it can really make a dent in the price. Sometimes you can even score a new car for less than a used model would have cost you. You’ll especially start seeing good incentives when the car market is slow.
5. You’re the First Owner of Your Car
The more owners a car has had, the more likely someone has abused the car. Unfortunately when people aren’t planning on keeping the car for a long time, they tend to not take quite as good care of the car. When you buy a new car, you’re not running the risk that a previous owner has red-lined the engine, or been hard on the brakes. You know you’re getting brand new tires. And you don’t have to worry whether maintenance was done on schedule. You are the first owner, so from day one, you get to take care of the car the way it should. Now, just don’t be that guy that is hard on the car and then trades it in.
6. You Won’t Need to Shop for a Another Car for Longer
Car shopping is a pain. Some people like it, but I don’t. If you’re like me, the longer you can go without car shopping, the better. Buying a new car gives you an extra few years where you don’t need to car shop.
7. A New Car Gives You An Extra Few Years of No Maintenance
Once a car hits 5 years, more things start needing to be replaced, and the car starts spending a little more time in the shop. A new car gives you more years where you don’t have to worry about all these issues.
8. You Might Get Better Gas Mileage
In general (disregarding 1970 Volkswagens), newer cars have better gas mileage. Again, sometimes there is no difference between a two-year-old car and a new car. But sometimes a redesign includes better gas mileage.
9. Your New Car is Safer
Cars are constantly getting safer as new features get rolled out and tweaks are made. There’s a chance this can make a difference in avoiding or surviving a crash. There’s also a chance that this can make a difference in your insurance premiums. Again, there may or may not be a difference between a new and gently used model.
10. A Single Email Can Apply Some Real Bargaining Leverage
Sure, you can buy a used car by email. But when you are buying a new car, the dealer knows that his competitors (in the same brand) are all offering an identical product. If you know exactly what car you’re wanting, shoot a single email to all the dealers in your extended area, letting them know what car you’re wanting, and asking for their very best price. Be sure it’s clear in the email that you’re sending the email to all of them. Sit back and watch the free market do its thing. Some may not even bother responding, but there’s a good chance you’ll get a few really good offers. I didn’t even go all out, and it worked well for me.
While I do strive to only write accurate information and dispense valuable advice, I am not a licensed financial adviser. All information is based solely on my personal experience and personal research and should be treated as such. Find out more.