Should I buy a new car?

Reader question:

I need to buy a car, but I want to know if I should get it new. Should I?

Xavier

Let’s look at it.

Buying a car is an enormous decision, and it comes with a lot of little decisions. One of those is whether you should buy your car new or used. Both have significant pros and cons, and if you’re unsure of what you want to do, you should consider those pros and cons before making a final decision. After all, you’ll probably have to deal with your car for the next few years, and it will set you back a few thousand bucks.

So what’s so great about buying a new car?

• Warranty! This was my favorite part about my first new car. I really didn’t even care if it was infectious green-brown and shaped like an apple. The warranty was enough to sell it for me. And it should be the first thing you think about when getting a new car. It will come with a warranty from the manufacturer that will last at least three years or thirty thousand miles and cover any kind of circumstance. There are even some places that will give you ten years and a hundred thousand miles! You probably won’t even need it that long, nor want it.
• Top notch. If you get a new car, then you’re getting all of the latest technology. We’re talking about the latest stability control and rollover sensing and all of that great safety stuff. Not to mention that you’ll have options like a DVD navigation system, satellite radio. It’ll be as comfortable, safe, and convenient as a car can get.
• Certainty. With a new car, you’re the first person to put your hands on it. There’s no need to be worried about mechanical problems or any other damage that might have been covered up: you’re car hasn’t had a chance to get hurt.

But, then again…what’s not so great?

• Money. Even a car a couple of years old in good condition will cost a lot less than a brand new car. If you’re looking to save money, this might not be the best way to go.
• Insurance. Sure, having all the latest safety features on your new car could score you some good discounts on your car insurance premium. All the same, though, you’ll have to be paying for extra coverage like collision and comprehensive, and car insurance companies charge a lot more for new cars.
• Depreciation. The second, the very second, that you drive that car off the lot it depreciates by up to forty percent. Once you have it, you have lost money. You will be paying on it for years, and regardless of the condition you keep it in, you will get hardly any of that money back once you decide to sell it or trade it in.

Cheers,

Fashun Guadarrama.