Everyone always wants to buy a new car, rather than used. That’s because 99% of the things we buy are always new. Some would consider it gross to buy something used. Perhaps they also feel like the car wouldn’t really be theirs if they bought it used. It’s possible they enjoy the new car smell. Maybe they just want to show off to everyone at work. Perhaps they buy new because that’s what the commercials on TV tell you to do. Maybe they just want a new 2013 model. Regardless of the reason, buying a new car is not better than buying a used one. Don’t believe me? Read my reasons before you refute my opinion.
Depreciation
The number one reason to buy a used car is because of depreciation. When a new car drives off the lot it has instantly lost thousands of dollars. You can sell it back to the dealer weeks later and they’ll give you just a fraction of what you paid. You can sell it to someone else and they’ll also give you a fraction of what you paid. A new car is worth so much because it’s new. The moment you drive it, it’s not new anymore. Now you might say, but a used car also goes down in value. Yes, that’s true. But the biggest drop in price of a vehicle occurs in the first couple of years. That’s why you buy a used car that’s a few years old so you’re not the one who suffers the loss in value.
Negotiation
You can get a better deal on used car than a new car. The reason is because dealerships have to follow certain rules with new cars. There is a real bottom line that they just aren’t allowed to go under. They can mess around with the numbers on a loan a lot, but you’ll still pay for it in the end. But when you’re dealing with a private seller buying a used car, there is no bottom line. It all depends on how desperate they are for money and the demand for the car. If they need the money real bad and nobody is making them an offer, that’s your chance to land an amazing deal.
Condition
The argument goes that a new car is in perfect working condition and a used car is on the verge of problems. It sure does seem that cars start to have problems soon after the warranties expire. However, cars are now built to last. A properly maintained vehicle can last you 15+ years and 150k+ miles.
Loan
When you buy a new car odds are you’re going to get a car loan for it. If all you’re worried about is your monthly payment, rather than the total price of the car (including interest) then you’ve got a problem. Many opt for 5 year deals which means an even higher interest rate. Missed payments could damage your credit and they can even repossess your car. So you could conceivably end up with bad credit and no car after giving them thousands of dollars throughout the years.
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