Are you in the market for a new or new-to-you vehicle? While you can save a ton by purchasing a new car from a dealer or private seller, sometimes only brand new will do.
Yes, buying a used car can spare you a huge depreciation hit. According to Ramsey Solutions, a new car loses around 9% of its worth once you drive it off the lot.
Is it worth accepting that type of depreciation? Here are 11 cases in which doing just that is justified.
You Keep Your Cars Forever…
According to a Reuters report citing S&P Global Mobility, the average age of cars and light trucks in the U.S. is a record 12.6 years. That’s up by a couple of months from 2023.
Buying new vehicles could make sense if you keep them for a long time. Yes, you’ll deal with depreciation. But owning the car long-term means you’ll get the most from your investment.
If your plan is to keep your car until the wheels fall off, you won’t be as concerned about the depreciation factor.
So, a new vehicle can be a wise investment if you plan to buy and keep a car for a decade or more.
You Want to Avoid Used-Vehicle Problems…
If you purchase a reliable, brand-new model, you won’t have to deal with expensive repairs for a few years.
Oil changes, tire rotations, and other basic maintenance are all you’ll have to contend with.
But if you buy a used or new-to-you vehicle, the headaches could start shortly after driving it home for the first time. Whether you buy a second-hand car from a dealer or private seller, you can’t be sure if the vehicle was properly maintained.
So, if you’d rather avoid used-vehicle issues, buy a new car and delay costly issues.
You Want a New Car Warranty…
There’s no such thing as a worry-free vehicle-ownership experience. But you can build in some protection with a bumper-to-bumper warranty. That’s what you’ll get with a new car.
When the drivetrain, powertrain, and other components are under warranty, you won’t have to fret about expensive repairs for several years.
You won’t get a warranty with every used car. That’s especially true if you buy it from a private seller. Going that route could leave you with a lemon, money pit, and migraine headache.
Even if a used car comes with a warranty, it might cost too much for what it covers.
You Don’t Do Used…
Let’s face it. Some consumers don’t want to buy anything used. They want new stuff.
If thrift shops, garage sales, or online classified ad sites don’t interest you, buying a new car might be the only option you entertain. It’ll cost you more. But it can also spare you some avoidable issues.
Dave Ramsey, the renowned personal finance guru, suggests buying a used car over a new one unless your net worth is at least $1 million. And only an all-cash deal will do.
A financing agreement can cost you a lot more than the initial purchase price. If you want a new car and have to finance the deal, try to pay off the loan sooner rather than later to save money.
You Want the Latest Technology
Another reason to buy a new car is to get the latest technologies. Safety tech continues to improve. You might not want to compromise when it comes to the safety of your family.
If you love a certain vehicle model and realize that the newest model has tech that early ones didn’t, buying new might be the only option.
You’re a Serial Leaser
Do you like to drive a cool car every couple of years? If so, leasing new cars might be a good idea.
You can enjoy a new car and move on to something else at the end of the lease. That strategy works if you want an electric vehicle since options in that space depreciate quickly.
You’ll Get Better Resale Value
Buying a new car over a used one also makes sense if you’re concerned about resale value.
If you purchase a car today and sell it or trade it in within a few years, you’ll get a higher value based on factors that include the age of the vehicle. That’s something to factor into your choice.
You Get a Deal You Can’t Refuse
Even if you head to a car dealership for a good used vehicle, you might have a change of heart. Car sellers sometimes offer tantalizing special promotions that you can’t pass up.
It might make better sense financially speaking to take advantage of a deal for a new car.
Whether a car dealer sells a new car at a discount to make room for the newest model year or you’re good at haggling for a better price, you might get a deal that can’t be refused.
That’s a good reason to buy a new car. It might be a once-in-a-lifetime opportunity.
You Want a Better Interest Rate
Whether financing or leasing, the interest rate is something to consider before signing a contract.
Car loan interest rates are typically lower for new vehicles than for used vehicles. A key reason for this is that vehicle makers sometimes subsidize loans for new cars.
You Need a Super-Reliable Vehicle for Work
Do you need a reliable vehicle for work purposes? A new car could mean fewer headaches if you’re a traveling salesperson or have to visit clients as part of your job.
As was mentioned before, buying a new car means you shouldn’t have to worry about serious issues for at least a few years. It should only be a matter of oil changes and other maintenance.
While a used car might be an option, buying a new one might make more sense for work purposes.
Unless car maintenance is part of your DIY skill set, a new car might be better than a used one. Otherwise, you could spend more time in a repair shop than on the road making your living.
You Want a More Reliable Model Year
Are you sold on a certain make and model but know that the last few model years were fraught with problems?
If you find that the newest model is more reliable or has a better build quality, buying the new model is the way to go.
These Are 11 Reasons to Buy New Over Used
While there’s nothing wrong with buying a used car if you do your homework, some consumers should stick with new models.
If you relate to any of these 11 reasons to buy new, your next vehicle should be a brand-new car.
