If you're looking for the main pros and cons of buying a new car, you'll have better protection plans, access to advanced technologies, better financial plans, and more customization options. But, on the other hand, some of the main cons of buying a new car are higher initial cost, depreciation rates, and insurance rates.
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Buying a new car is a huge investment after purchasing your dream house. That's why deciding on buying this car is a very important decision, and it takes patience, and it requires some preparation.
There are plenty of pros to purchasing a new vehicle, but at the same time, there are some drawbacks that you need to be aware of before making a final decision.
This article provides you with our expert opinion about the main pros and cons of buying a new car. We also help you with some additional tips and tricks to keep in mind when shopping for your new car to eliminate undesirable outcomes.
What are the pros of buying a new car?
Owning a new car is one of the common desires for most people. So whether you are interested in the smell of the new vehicle or the fact that you're the first one to drive this car, you'll have a point where you might wish to purchase a new car.
Let's take a closer look first at some of the common pros of buying a new car:
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You'll have better protection plans
One of the first and most important adventures of buying a new car is the warranties. In most scenarios, when something goes wrong in your new vehicle, the manufacturer takes responsibility and fixes any unexpected problems.
That's why when you buy a new car, you don't have to worry about dealing with major mechanical problems immediately after purchase. Unfortunately, you never have this advantage when purchasing a used vehicle, especially if you buy it off classified websites like Craigslist. You never meet the seller after, and it's all your responsibility to deal with any problems.
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You'll get access to advanced technology
In general, when you go for a new car, you will most likely take advantage of new high-tech features and the best options for more efficient fuel economy.
Furthermore, manufacturers compete to provide additional safety features in many innovative ways. Thus, you won't have this advantage when purchasing a used or preowned vehicle.
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You have plenty of financial options
When shopping for a new vehicle, the dealership works hard to provide you with plenty of financial options to encourage you to purchase this car. In addition, there are plenty of financing programs that depend heavily on your credit score, which makes purchasing the new vehicle cheaper upfront than buying a used car and needing to pay the entire cost the same day.
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You don't need to look at the history, of course
The nice thing about buying a new vehicle is that you don't have to spend time and effort reviewing all history of the vehicle to detect whether it experienced any major problems or not.
On the other hand, when shopping for a used car, it's your responsibility to make sure that you did your due diligence about reviewing all history of this vehicle. Unfortunately, there are plenty of scammers who might hide some details about the vehicle, and you won't realize these details unless you finalize the deal on a sign on that data line in the contract.
Therefore, if you are not comfortable enough or don't have previous experience determining all details about the vehicle's history, buying a new car can be a cheaper option for you. However, it might not sound the case at first glance.
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You have options for more flexible customization
When shopping for a new vehicle, you have the option to request certain customization to this vehicle. In other words, if you're not happy with certain features, you can besides remove them and add additional features that work for you.
On the other hand, when purchasing a used car, you have to purchase it as is, and even if there are plenty of features that you don't like or you think or extra, you have to deal with them. In plenty of situations, people who bought used cars wished to have additional features that do not exist in the used car.
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It has higher reliability rates
The last thing we need to cover here is the reliability and unexpected repairs. When buying a new car, you will most likely not deal with any major unexpected repairs immediately or even after thousands of miles of driving this vehicle.
On the other hand, it's not surprising to hear that some people had to deal with major damages like engine issues or transmission problems immediately after driving the vehicle for a couple of miles only. And that goes back to the fact that there are plenty of scammers out there who might sell you a car with mechanical problems that you might not detect when you test drive them.
What are the cons of buying a new car?
After reading through the name pros of purchasing a new car that there are no cons at all. However, that's not the case, and there are plenty of drawbacks that you need to be aware of when shopping for your new car, including:
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You'll need to pay more
Obviously, purchasing a new car is more expensive than buying a used vehicle there. Even if you're planning to use any finance, you'll still have to pay a down payment that is not cheap. Otherwise, you will end up paying extremely high costs for the vehicles are oil value and articulate longer to finish paying it off.
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New cars depreciate faster
The first and biggest issue about purchasing a new car is depreciation. According to experts, vehicles might lose about 11% of their original value immediately after purchase.
Imagine if you purchased the car, and it took you about five years to finish paying it off; how much will this car be worth at that point? Well, it's not surprising to hear that your car's value might drop by as high as 40%, if not more, from the ordinal cost.
For instance, one of our customers indicated that his 2008 Cadillac Escalade was purchased for about $60,000, and after a couple of years only, when he tried to sell it, the asked price was only $32,000!
Therefore, if you think that you're planning to sell your new car at some point for any reason, keep in mind that depreciation rates and understand exactly how much you will lose from the car's original value at the point where you decide to sell it. But, of course, knowing whether you're going to sell this car or not can be a little challenging because we never know what happens in the future and what type of financial challenges that we might deal with at that point.
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Will pay more for insurance
Something to keep in mind when shopping for a new vehicle is the interest rate. Did you know that when purchasing a new car, you are required to carry the full coverage insurance until you finalize all your payments?
In general, trying a new vehicle is more expensive than a used car because there are plenty of factors that go into the evaluation process to calculate your final premium costs. Some of these factors are the vehicle's age, and the newer the car, the higher the interest premium rate.
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It will not stay new no forever
When you buy a new car, keep in mind that this car will become old at some point in time.
So, motivation for purchasing a car has to do with aesthetics; the vehicle will not look the same after a short time. For instance, you might deal with some dents or scratches, and the floor mat will not be as known as before. Therefore, before making a final decision of purchasing a new car all this money, make sure that you are aware that this car will not stay new forever.
What are the advantages and disadvantages of buying a used car?
If you felt that purchasing a new car is not the way to go, you might need to consider buying a used vehicle instead.
There are plenty of adventures you can get when buying a used car, including:
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You don't have to pay high prices
When buying a used car, you don't have to worry about very high costs. In general, most used vehicles don't experience further depreciation as high as the ones you might experience when buying a new vehicle.
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There are still some warranties
While it might sound that used vehicles do not have any warranties options, that's not the case over time. Some car sellers provide you with certain warranties like those associated with the drivetrain, which is about 200,000 miles.
There are some options for buying a preowned certified car from certain dealerships, which also comes with a warranty usually coming from the original manufacturer.
Keep in mind that these pre-owned certified vehicles are more expensive than used vehicles, but it's worth it.
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Insurance prices are much lower
As we indicated before, insurance companies consider many factors when calculating your final premium rate. But, of course, the car's age is one of the most important factors, and the older your car, the cheaper the insurance plan.
Keep in mind that when purchasing a used car, you still must deal with some of the general disadvantages is that you don't find when buying a new vehicle, including:
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Used cars have more mileage
Obviously, a used or pre-owned vehicle will have certain mileage on them. In other words, the lower the price, the higher the mileage in most scenarios. However, vehicles are expected to experience major mechanical problems at a certain mileage that costs you a lot, especially those related to the engine and the transmission.
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You won't have a lot to select from
When shopping for a used vehicle, you don't have the flexibility of customization and the long list to select from. Instead, you have to only deal with whatever is available, which might not match your desires.
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You don't have customer protection
Scammers might take advantage of the customers in all situations, and you can easily fall into buying a lemon or a damaged vehicle without knowing. Unfortunately, there are no protections in these scenarios because you bought the vehicle as is, and it's your responsibility to check for any he showed before signing the contract and transferring ownership.
Conclusion
Buying a new car is a dream to many people, but it's also a huge investment and requires some research before deciding. This article provided you with the main pros and cons of buying a new car.
In general, when you buy a new car, you have better access to advanced technologies, better protection plans, more customization and financial options, and others. But, on the other hand, buying a new vehicle requires higher initial value, depreciation rates, and insurance premiums.
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