Is a New Car Worth It?
Is It Worth It to Buy a New Car?
Everyone wants to buy a new car, but does it really make sense to do so?
Buying a new car today is easier than ever. With several banks and financial institutions offering car loans, anyone can afford to get a vehicle of their choice. And, with car dealers tying up with financial institutions, there always seem to be amazing offers and deals on new cars.
While there is a huge market for used cars, the market for new cars is just growing bigger and bigger. New cars are introduced every year and they come in several makes and models. Too many people are enticed into buying a new car instead of buying a used car.
I’ll admit, buying a new car does feel exciting but is it really worth it to buy a new car? Let’s find out.
Pros of Buying a New Car
There are several pros of buying a new car as compared to buying a used car. First of all is reliability. New cars are far more reliable than used cars and they suffer from fewer problems and require lesser maintenance. In today’s fast paced world, not everyone has to time to deal with car repair issues too often. In such a case, buying a new car makes much more sense than buying a used car.
Also, most banks and financial institutions offer lower interest rates on new car loans as compared to used car loans. Over a longer-term loan, the lower interest rate can make a huge difference. Plus, the resale value of a new car is always higher than the resale value of a used car.
Finally, new cars smell wonderful and who doesn’t love the smell of a new car? This is something that a used car can never offer to a second owner. This may not matter much to a lot of people, but it definitely does to many, including myself.
Cons of Buying a New Car
There are also many cons of buying a new car as compared to buying a used car. The most obvious is the cost. Used cars are far cheaper than new cars, not in terms of interest rates, but in terms of the down payment. A lower down payment means that more people can afford buying a used car. Another point is insurance. Insurance costs are usually lower on used cars as compared to new cars. This difference may not be very large, but over the years it amounts to significant savings.
Finally, the market for used cars may not be growing as fast as that for new cars, but it is certainly fairly large. And, car manufacturers recognize this. That’s why most modern cars are built to withstand the test of time. Cars these days are built better than ever, so there’s absolutely no risk in buying used instead of going for new. In fact, this is one big reason why so many people prefer to buy used cars instead of new.
Who should buy a New Car?
Many experts say that buying a new car is a bad investment. But there are certain cases where buying a new car makes complete sense. If you want the latest in terms of safety, features and technology, then you probably should buy a new car. Also, if you’re looking for more reliability and you’re not looking to sell your car for a few years, then you should get a new car.
There are several pros and cons of buying a new car. New cars are more reliable, they have lower interest rates, have a better resale value and smell better as compared to used cars. On the other hand, used cars are cheaper, insurance costs of used cars are lower and used cars are built to withstand the test of time.
If you have the cash ready for a down payment and you’re looking for a reliable and safe car for a few years, go for a new car. Else, a used car will do you just fine.
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