Driving a brand new car off the lot is a great feeling. You are the first person to ever have the vehicle, and you don’t need to purchase an air freshener with the “new car” scent. However, there are some downfalls to buying new, which is why you may want to strongly consider a used vehicle.
1. Prices are generally higher
When choosing to buy a vehicle that is new, you are going to see much higher prices, according to Cars Direct. Oftentimes, dealerships will try and draw you in with factory rebates, warranties, and cash back, but these discounts rarely make up the difference between what you would have saved buying used. Immediately after you drive the car off the lot, it will lose a lot of its value, so even if you wanted to sell after a year or two, chances are, you won’t get nearly as much as you paid.
2. Insurance is often more expensive
With a vehicle that is worth more money, it will cost you more each month for car insurance, according the SmartAsset blog. So, in addition to more expensive payments for the vehicle, your premiums will be higher as well. Buying new is a major financial commitment, and you will want to be sure that you are able to afford doing so before signing on the dotted line. If you want to cut down on your insurance cost, it may be a good idea to look into certain discounts, such as bundling with other types of policies.
If you insist on buying new, comparing online insurance quotes is a great way to find the most affordable policy available. This allows you to compare and contrast policies to find the cheapest with the broadest range of coverage.
3. Value depreciates quickly
One of the biggest negatives when purchasing a new vehicle is how fast it loses its value. If you buy a car for $25,000, it won’t be worth that much as soon as you leave the dealership. That said, if you are going this route, you should plan on keeping your car for a while so you can get the most out of it.
4. Expensive add-ons are pushed by salespeople
With salespeople looking to get the biggest commission possible, you will be pushed into purchasing add-ons when choosing a new car. For example, they will likely try to get you to buy the latest and greatest touch navigation system for your dashboard. While you may not need this, the salesperson may convince you it’s a necessity, which can potentially lead to you spending more money than you had hoped on your new car. It could be a good idea to have your salesperson compile a list of the features that could be added to your vehicle, so you can choose the ones you desire.