The cars we drive talk a lot about us. Whether it is your first buy or not, a new car is indeed a celebratory event of life. So, whether you choose a hatchback, an SUV or a crossover, a car is indeed one of the biggest purchases of one’s life. So, buying a new car indeed involves a lot of analysis and careful consideration of a lot of factors before you zero in on to your dream car.
Buying a New Car
Buying a New Car: What are the Pros and Cons?
Exercising due diligence when you decide to buy a new car is really crucial. You need to weigh so many factors and narrow down your choices to achieve that new milestone in life. A new car is undoubtedly one of the most satisfying purchases and to do it right is what makes a difference. From budget to performance, technology to the cost of ownership, there are several considerations to find your perfect fit.
The most obvious benefits which a new buy brings are new technology and features. With the latest cars storming the automobile industry, you can have some really cool advanced features like Stolen Vehicle Tracking Software, Adaptive Cruise Control, Automatic Emergency Braking, Lane Keeping Assist and many more which will be absent in the old cars or models.
A new vehicle comes with a manufacturer warranty and will have low maintenance or wear and tear in the initial years of purchase. Even if the car is in mint condition, still a new one has its own pros. From special offers to certain incentives, lower interest rates to higher fuel economy, the pros of buying a new car often outweigh the pros of buying a second-hand one.
Yet another advantage which a new car offers is that you are well aware of the car’s maintenance history and the overall performance since the very beginning. With an in-depth knowledge of each and every aspect of your car, you are not just the first and only owner of the car but also have the peace of mind. Last but not least, with the safety features becoming all the more advanced like the Lane Departure Warning, buying a new car seems to be a feasible and appealing option.
Depreciation is a crucial factor and one of the cons that make a new buy in case of cars, an option less appealing. As soon as you drive off your new car from that parking lot, it loses around 10-12% of its value and overall 40% of its total value in the initial three years of its purchase. So, unless you have a lot of money that you won’t mind losing, investing in a pre-owned car is a better option. Unlike an investment in real estate, a car’s value declines sharply in the initial years, not making it a lucrative option for many buyers.
Tax and Insurance costs associated with pre-owned cars are often lower than those of the new cars which adds to the list of cons of new cars. The initial purchase and downpayment are quite hefty which make new cars less appealing for many out there.
Ultimately, the decision to buy a new one or a pre-owned one depends upon your financial bracket and preferences. Make sure before you ultimately decide, you do your research and finalize the most reliable option for yourself. An expert’s advice comes in handy when you are confused or lack the expertise to make an informed choice.