The pros and cons of buying a new car

There is something special about the idea of buying a brand new vehicle. Just picture yourself sliding into a shiny new car. That particular “brand new” aroma invades your sense of smell. Your eyes are pleased with the flawless new design. The idea attracts you, but should you give in?

I have always driven used cars, starting from my lovely Citroen Xara Picasso to the flawless and durable Honda Civic LX, neither one has disappointed me. Truth be told though, I have never ever driven a more reliable car than my Honda Civic 2005. Even though I bought it used, it was well taken care of, with only 52 000 miles and an impeccably clean engine, brakes, and interior. Very few are lucky as I was, though.

The Pros and Cons of Buying a New Car:

Pros:

• Deals – They are everywhere. Especially if it’s the end of the season, when car dealerships need to get rid of their stock, so they can make space for the inventory. This is when they are most vulnerable. They are not only willing to give you a deal, but they will also negotiate with you until you get to a price point that is convenient for YOU.
• Confidence – you simply know what you are getting. It is a brand new vehicle with brand new parts, a pristine engine, clean brakes, and the best of all  – sparkling new interior. All of this makes it a reliable source of transportation that is not going to break down when you least expect it.

• Warranty – No matter how you put it, very few things can beat a manufacturer’s warranty. Most of the new cars in America are sold with an Implied Warranty.  It means that goods are sold as advertised, and with a Satisfaction Guarantee, which is based on the Magnuson–Moss Warranty Act of 1976. The Satisfaction Guarantee allows you to be fully refunded, regardless of the reason for your dissatisfaction with the product.
• Safety – What used vehicle can offer more safety than a new car? Equipped with the latest airbags, lock controls, anti-lock brakes, the LATCH system for child seat safety, and electronic stability controls, the new cars offer a big advantage when it comes to passengers’ safety on board.
• Fuel efficiency – Like it or not, fuel efficiency is important, not only for the environment but for your pocket too. When the gas prices are going up, you really want to consider this aspect. So, if you want to save some money at the pump, you should really consider getting a vehicle that is following the latest CAFÉ – Corporate Average Fuel Economy standards.

Cons:

• Price – Regardless of how good those deals might be, sometimes buying a new car may not be one of them. You put a lot into it, but do you actually get all of it out? Let’s put it this way – if you have decided to buy a new car, it is because you are thinking of sticking to it for a while. What if that’s not the case, though? You never know what you may decide in a year or two! Should you go for it, just to sell it in 2-3 years maybe?
• Value – New cars depreciate in value much faster than used, that’s a given. Most of them depreciate with as much as 45% throughout their first three years on the market. Moreover, with the durability of many used cars, a used vehicle sometimes is just as reliable as a new one. So, do you really need that new car? The market has changed to such an extent that shops offer you 30-40% off of cars that are 3-4 years old. Now, where did the incentive go?
• Certified used-cars programs – Enough said. For anyone who knows what this is, it is clear that a new car is not needed. These programs, backed by manufacturers, allow you to purchase a used car – 3 years old or newer, with a 12-month or more manufacturers’ warranty on it. This is an invaluable incentive to go for a used car that offers the same level of satisfaction as a new vehicle.

Here are the two factors you ALWAYS have to consider:

• Maintenance – With a new car there is virtually no maintenance involved, but is there…. Now, think about it. If you want to have a great performing vehicle at all times, you are going to spend a lot of time and effort maintaining the vehicle to preserve it and keep it up to the same standards as new. For example, you will most likely buy a higher quality oil and fuel.

• Insurance – That’s a tricky one. In general, new cars have higher insurance rates. But if you are a bit older with a good driving record, you can get away with a cheaper rate. Why is that you may ask? Think of it this way – a new car has a higher value than an old one, more expensive parts in case of damage, and, in general, is more demanding. Now, if you are a younger driver (even if you have a good record) – you are still not as reliable as the older fellow driver, simply because of lack of experience, which in this case will bring your insurance rates up because the chances of you getting into an accident are higher.

Would you buy a new or used car and why? Share with us the comments below. Thanks!