Six Great Reasons to Buy a New Car Over a Used Car
It’s safe to say that most people intuitively know that buying a new car is better than buying a used car, but why is that? If you are saving up to buy your first car, or you’re just on the fence about whether you should spend the money for a new vehicle or save it and purchase something used, then this article is for you.
1. New Cars Get Better Interest Rates
For most people, one of the biggest considerations when deciding whether to buy a new or used car is the price. There is a huge misconception that used cars are cheaper, but that’s genuinely not the case. Of course, a used vehicle will have a lower price tag than the same model brand new, but several additional expenses come with a used car that should be factored into your financial decision.
Some people can pay for their next vehicle in cash, and if that’s the case—fantastic. But for the rest of us, financing is a thing, and the amount of money you need to pay each month for your vehicle, whether new or used, is determined by your interest rate. New cars get better interest rates.
Used car dealerships are notorious for their exorbitantly high, sometimes predatory, interest rates. Even with perfect credit, a used car dealership is unlikely to provide you with the same attractive financing rates as a manufacturer or new car dealership can offer.
2. Longer Warranties and Greater Peace of Mind
Another factor that’s crucial to consider is the warranty that comes with your vehicle. Used vehicles often come either as-is or else they feature a very short, laughable warranty. If you buy your next vehicle used and it breaks down in six months, chances are that you’ll be on the hook for all the money it costs to fix it. Imagine if the engine or transmission goes. You could be looking at $5000 or more in parts and labour to get it back on the road, eating up most, if not all, of the money you saved by buying used.
If you buy a new vehicle, odds are that you’ll have a warranty that lasts for years or a certain amount of kilometres, usually 100,000. This means that if the car breaks down in six months, or 26 months, you’ll be covered. You will be able to get your car back on the road quickly and with little or no out-of-pocket cost to you, which means that your purchase just became that much cheaper. Plus, you are likely still covered for some time to come, whereas with a used vehicle you will be responsible for the cost of repairs every time there is a problem.
3. Depreciation Isn’t What It Used to Be
In days gone by, your new vehicle would lose as much as 50% of its value the second you drove it off the lot, but these days that’s simply not the case. Although new vehicles do lose a little of their value when you take ownership, the truth is that modern cars are equipped with several state-of-the-art features, advanced next-generation engines, and quality components that allow them to retain much of their value even years later.
An older used car will likely lose its value very rapidly because newer models are better equipped and come with many valuable features that just aren’t found in cars more than a couple of years old. Innovation has skyrocketed in automotive technology over the past few years, and so the cars of today will remain valuable well into the future. For this reason, it’s important to consider the cost of depreciation when choosing your next vehicle.
4. Lower Overall Maintenance Cost
New vehicles have fewer problems. It’s just the way it is. New vehicles are, generally speaking, in perfect working order. All the components are fresh from dozens of inspections and tests to ensure that they are working correctly.
With used vehicles, you never know what sort of maintenance and repair costs will crop up, or when, but the impact on your wallet will surely be significant when they do. Most new cars come with service included, which can make things even more economical and help you keep your car on the road even longer, often without spending another cent.
5. Fuel Efficiency Breakthroughs
One of the biggest advancements in automotive technology over the past few years has to do with fuel efficiency. Many new cars on the road feature cutting-edge engines that are designed to keep going further than older models do. The many hybrids and hybrid-electric models coming out these days offer unprecedented fuel efficiency, often offering 600 or more kilometres on a single tank, which means that when you buy a new car, you’ll save a ton of money on gas every week.
6. Customize and Make It Yours
Last but not least, when you buy a new vehicle, you can customize it directly with the manufacturer so that it’s built to your exact specifications and features all the options that you want and need in your next vehicle. When you buy used, you don’t have the luxury of customizing anything; you are buying a vehicle that was customized to be perfect for the original owner. If you really want to make it yours, then the only option is to buy a new car.
Buying a new car is much better than buying a used car. Not only will a new vehicle be cheaper in the long run, but it will also come with a ton of modern features and benefits that you simply won’t find in an older used vehicle. So, when the time comes to buy your next vehicle, consider all the hidden costs and treat yourself to a new car that has been custom-made to be perfect for you—you deserve it.