Advantages and Disadvantages of Buying Brand New Cars
If you are still deciding whether you are going to buy a new car or a second-hand vehicle, don’t worry, in this article we list down the advantage and disadvantage of buying brand new or second-hand cars. Don’t worry; you are not the only one with this kind of problem. It is an age-old problem that every person who are planning to buy a car has to face.
And whether you choose a brand-new car or used cars, neither are right nor wrong decisions. It all depends on the buyer’s needs, wants, how much they are willing to spend, where are you going to use the car (whether it is only for a regular commute, cross-country travel, or rough-road adventure), or the appetite for risk.
Let us take a look at the benefits and the costs of buying a new car or a pre-owned vehicle, to make sure that you can make the right decision on choosing the car that suits your needs. There is also a third option – the Certified Used Car, but we will discuss it later, for the meantime, let’s talk about brand new cars and second-hand vehicles.
What is a Certified Used Car? Visit https://en.wikipedia.org/wiki/Certified_Pre-Owned for more information.
Advantages when buying brand new cars
Some buyers find the smell of a new car very intoxicating and would never consider buying a second-hand vehicle. There are benefits of buying a brand-new car. The features are always updated with what is new in the car world, you can have the latest technology like Apple CarPlay, Android Auto or Bluetooth phone connectivity, so you can still use your mobile phone legally while you are driving and without having to buy the aftermarket Bluetooth interface.
Driver assistance and advance safety feature technologies have also improved in the last few years. You can get the latest safety technology like adaptive cruise control, autonomous emergency brake, blind spot monitoring, as well as lane departure warning.
Even affordable new cars like Kia Forte or the 2017 model of Toyota Corolla have these modern safety features. Fuel efficiency has also been steadily improving, and most car manufacturers are being required to make models that are eco-friendly.
There is a good chance that the new cars can outperform cars that are made, 2 to 3 years ago with the same model. Fuel cost is one of the major components of a vehicle’s total cost of ownership. You will know that there is no wear and tear when you buy a new car, they have never been in an accident, and that there is a lower chance that there will be any uncorrected recalls.
You will not have to worry whether the car’s previous owners neglected the maintenance of the vehicle or they have been used in any illegal activities.
Brand new cars have a warranty from the manufacturers for at least the first two or three years or until they reached 36,000 in mileage, whichever comes first. That will give the owners a predictable cost of ownership over the first few years after they purchased the vehicle, without the risk of spending money on repair bills.
Buying a brand-new car is a lot easier than purchasing second-hand cars. With a lot of car models and versions to choose from the dealerships, you will likely find the car that you want on their lot. If not, the local dealer can trade cars with other dealers to find the one that you are looking for, the exact model, trim level, the color, and the options list.
For example, you found cheap cars for sale in Fresno, but the model you are looking for is out of stock. The dealership can find the exact model from other dealership within your area and trade cars with them. The car shop will add a little extra for the transportation and labor.
Most manufacturers also offer financing incentives as well as lease deals on brand new cars that are not usually found on pre-owned or used car models. If you think about it, some 0% financing deals can cover the whole amount you need to pay for the car down to the level of second-hand cars using traditional financing.
If you are looking for a loan from credit union or banks, you will be offered a lower interest rate when you buy a brand-new car than you would on used cars or pre-owned model.
Disadvantages when buying brand new cars
The biggest problem you will face if you choose to buy a brand-new car is that you will pay a lot more for the car than when you buy a second-hand car with the same model. And the higher cost does not stop with the price. Because the value of the car is higher, you will also be paying a lot in sales tax. To know how to calculate sales tax on cars, click here.
The insurance you will pay will also be higher as well. It is not unusual for brand new vehicles to lose 20% of its market price the moment the owner drives it off the dealership’s lot, so if you do not pay at least 20% down payment, you are liable to owe a lot of money to the lender than what the car is worth.