All posts tagged buying new car

Why You Shouldn’t Buy a New Car: A Deeper Look Into Car Investments

new car buying

Buying a new car might seem like a great idea. After all, who doesn’t like that fresh-out-of-the-factory smell, the sleek paint, and the latest tech? However, if you look beyond these appealing factors, you may find some compelling reasons not to buy a new car.

One important consideration is the depreciation that occurs as soon as you drive the car off the lot. New cars typically lose a significant portion of their value within the first few years of ownership. Additionally, new cars often come with a hefty price tag, including higher insurance costs and increased registration fees.

Furthermore, buying a used car can offer several advantages. Used cars are generally more affordable, and you can often find a wider range of options within your budget. Additionally, many used cars still have remaining factory warranties or certified pre-owned warranties, providing peace of mind.

While the allure of a new car is undeniable, taking the time to weigh the pros and cons can help you make a more informed decision. So, before jumping into a new car purchase, consider the long-term financial implications and the benefits that buying used can offer.

Immediate Depreciation

One of the most significant drawbacks of buying a new car is the rapid depreciation. The moment you drive your new car off the lot, it loses a significant portion of its value due to immediate depreciation.

According to industry experts, a new car can lose up to 20% of its value the moment it leaves the dealership, and an astonishing 60% within the first five years. This depreciation can be attributed to various factors such as market demand, technological advancements, and the introduction of newer models.

It’s important to consider this aspect when deciding to purchase a new car, as it can have a significant impact on your long-term investment and financial stability.

High Financial Costs

When purchasing a new car, it’s important to consider the high financial costs associated with it. These costs extend beyond the hefty initial purchase price and encompass expenses such as high insurance rates, expensive registration fees, and taxes. On the other hand, opting for a used car can provide a more financially sensible choice by helping you avoid these additional expenses. By carefully considering these factors, you can make a well-informed decision that aligns with your budget and financial goals.

High Technological Risks

New cars, with their cutting-edge technology, often boast a range of exciting features. While this may appear appealing, it’s important to consider the potential risks that come with it.

As with any new technology, there can be glitches and unforeseen issues as it undergoes testing and refinement. Purchasing a brand-new car means embracing the latest, yet untested, technology, which may require patience and adaptability to overcome any challenges that may arise in the future.

Environmental Impact

When it comes to choosing a vehicle, it’s not just about the cost and convenience. It’s also worth considering the environment and the impact our choices have on it. The production of new cars contributes to a substantial carbon footprint, from the extraction of raw materials to the manufacturing process.

By opting for a pre-owned vehicle, you not only save money but also play a part in reducing environmental impact. By extending the life of an existing car, you help to delay the production of a new one, which in turn reduces the consumption of resources and energy. It’s a small but important step towards a more sustainable future.

Conclusion

While buying a new car might seem like a good investment at first glance, it’s crucial to consider the factors mentioned above. Immediate depreciation, high financial costs, technological risks, and environmental impact are just some reasons why buying a new car may not be the best choice.

It’s always wise to weigh your options carefully and consider all factors before making such a significant financial investment. Remember, a car is a tool for transportation, not an investment asset. It’s all about making the right choice that suits your needs and budget.

image credit: envato.com

Think Long-Term: 4 Benefits of Buying a Newer Car Model

nissan, new nissan

When buying a car, one of the first decisions you will have to make is whether you should get a new or used car. While used cars are more affordable, there are four reasons why you should consider getting a new car.

More Long-Term Reliability

The first reason why you should consider getting a newer car from a dealer, like Bay Ridge Nissan, is that they will provide you with more long-term reliability. Cars today are built very well and can last a long time until major repairs are needed. Generally speaking, you can expect for the major mechanicals of the car to last for up to 75,000 miles until major repairs are needed. If you buy an older car with a lot of miles, much of the money that is saved on the purchase price will ultimately be spent on repairs and replacements. Furthermore, you could find yourself without your car for an extended period of time while it is in the shop.

Resale Value

The second reason to buy a newer model car is that it will have a higher resale value. While old cars can be more affordable, they tend to depreciate very quickly once they get past a certain point and can even be harder to sell. While brand new cars do depreciate once they are driven off the lot, those that are just 1-2 years old will hold their value very well for a few years in the event you want to sell.

Warranty Coverage

The third reason why buying a newer model car can be a good option is that it will provide you with more warranty coverage. Many new cars today come with warranties that will provide you with repair coverage for up to the first 60,000 miles that the car is driven. Even if you are the second owner of a relatively new car, the initial warranty will continue with the vehicle. This can reduce your maintenance costs over time.

Lower Borrowing Costs

The fourth benefit of getting a newer car is that your interest rate could be lower. Banks tend to view new cars as less risky lending options than used cars. Because of this, your interest rate on a loan could be lower. Furthermore, if you use dealer-financing options, you could get a great promotional rate that could be as low as 0% for the life of the loan.

In conclusion, buying a car is a big decision. When making the decision to buy a car, you will first need to decide whether to get a new or used vehicle. While used cars are cheaper, there are several advantages that come with getting a new car.

Six Things To Consider Before Buying A New Car

Whatever you financial situation, investing in a new car is never a small matter. Due to the fact that new cars lose a substantial amount of value the moment they are driven off of the lot, you can never be sure that you are making a sound financial investment without having the right information in hand first. By understanding the right questions to ask at the time of purchase, you can be assured that you are purchasing a winner.

All Charges Considered

Many deals can look very good on the surface. However, hidden charges often abound when it comes to purchasing a new vehicle. Maintain complete transparency when it comes to the price you will be paying by considering every fee that will apply to the deal. Negotiations typically include only the price of the car. Figure out what the total cost will be to drive off of the lot by exploring the fees related to documentation, sales tax, registration, and other hidden charges that are in the interest of the dealer.

The Car You Are Actually Buying

The majority of cars on the showroom floor are outfitted with additional add-ons and options. It is not unusual for dealers to package these extras into the deal in order to raise profits. Insist that all information related to upgrades is disclosed before finalizing the purchase. The most common features to fall into this category include mud flaps, alarm systems, and vehicle-recovery systems. Buyers also regularly encounter “paint-protection” packages and other unnecessary, costly warranties.

Details Matter

It is standard for dealers to charge a fee for documenting the purchase. However, this fee for filling out paperwork related to the purchase is not standardized for all organizations. This fee can range between $100 and $600. Some states cap these charges by law. These charges are negotiable in almost all cases. Address the issue early in negotiations in order to keep your costs to a minimum.

Online Purchases

It is not unusual for buyers today to purchase vehicles through online sources without ever actually seeing the vehicle in person. In these cases, there are several considerations that come into play. Be sure that you are made aware of the number of miles on the vehicle. Not all new cars come with a flawless odometer. It is also wise to explore your options for vehicle delivery. This option can be included at the conclusion of negotiations in order to save a little extra money when it comes to gas and visiting the actual dealership.

Loans and Interest Rates

It is important to know every detail of a dealer-provided loan. Be completely aware of the additional costs and terms of the loan before making all agreements. When looking at the raw numbers, applying for a loan in order to purchase a new car is best done though a neutral, third-party entity.

Stand Your Ground

It is important to let a salesman know that you are prepared to walk away from a deal no matter how good it is on the surface. Ask them directly what the best possible offer is that they can give to you directly. This tactic almost always ensures a better price at the bottom line.

Purchasing a new car can be less stressful with these tips. Consider looking online to read more about the vehicle you are interested in.

Informational credit to Expressway Dodge.

New Car: What You Need to Know Before You Buy

Buying a new car is a major investment, so before sending off your old model for recycling, it’s a good idea to do some research and make certain that buying a new car is right for you. Look at these factors before you finalize your decisions or finances.

Can I Afford It?

One of the primary decision-making factors in buying a new car is whether it fits into your personal or family budget. Many things contribute to the answer to this question. Start by knowing your credit rating and what sort of loan rates you are likely to be eligible for. Remember that those car commercials promising the $99 or $129 a month payment always include the disclaimer "with qualifying credit". Know what your financing options are before you head to the car lot.

Be sure to include all the expenses related to purchasing a new car in the decision. Are you ready for the down payment, tax and license fees, and the increased cost of insurance? Create a budget before you ever start looking at cars so you know what you can afford not what the car salesman wants you to buy.

What am I Looking for in a New Car?

People buy new cars for a variety of different reasons. If you are looking to save money by getting a more reliable car to replace the old clunker you are sending to recycling yards, read reviews regarding dependability. Find out which cars offer warranties, and which ones are known for their breakdowns.

Another reason some people buy new cars is to save on gas money. In this case, be sure to do the math. Some people assume that the higher price of a hybrid is worth it because of the savings at the gas pump, but that might not be the case. Figure out the average number of miles you drive a year and what you are paying for gas in your current vehicle. Then, figure out what gas will cost you to go the same number of miles in the new car. 

What Features Do I Want/Need?

Car dealers get the best mark up, that’s profit for the dealer, by selling you a car loaded with features, so knowing before you go whether you want the satellite radio and blue tooth compatibility is vital. If you really need those automatic windows or sliding doors make sure you know which model still offers what you want without going with the highest price.

Buying a new car is a major investment, but there are great reasons to do it. Just make sure you know yours before you buy. You can be prepared for anything the dealer throws at you if you prepared beforehand.