Why Buying A New Car May Not Be The Smartest Move

Before you buy, you need to know why buying a new car isn't smart business. That's right! In many situations, buying a used car is much smarter than purchasing a brand new vehicle for yourself and your family's use.

Why isn't buying a new car smart? First of all, as soon as you sign the papers to purchase a new car for many thousands of dollars, depreciation just cost you several thousand of those dollars. Once you drive away in your brand new, nice smelling car, your value when down by as much as ten percent. That's a lot of money just to get to see the odometer have all zeros on it!

Sometimes new cars present service hassles. Maybe everything wasn't adjusted just right at the factory. These things weren't found during the quality checks and you may have to return to the dealer several times to get changes made, parts tightened or adjusted or to have parts changed that don't work right. This is an impact to your schedule and time. Time is money and therefore, you lose money because you lose valuable time.

Many people buy new cars because of easy financing. Sometimes you can even get a factory rebate with a cash-back option and get money to put in the bank. There's a catch! That money gets paid by YOU over the life of your new car loan. It's just as easy to get used cars financed though you won't find the attractive come-ons that new car financing includes. But you will be able to make monthly payments just like on a new car.

Some people say that buying a new car is smart because of the warranty. If you choose a used, late-model vehicle from a reputable dealership, you may find that they provide a warranty for the vehicle or offer you the option of adding or extending the warranty options for a reasonable price. While the warranty won't last as many years as on a new car, the difference in the price you pay will usually cover any difference in repair costs.

Another reason why buying a new car isn't smart business is because of all the hidden costs in the price of a new car. There are dealer costs, transportation costs, and other hidden costs that are included in the price you pay. When a used car is purchased from the same dealer, there are no hidden costs included in the price.

If you think that buying a new car isn't smart business, shop around until you find exactly what you want in a slightly used car. Some people buy a new car every year or every two years and their trade-in vehicles are in great shape. You will save a lot of money while getting a car that looks almost brand new and performs like brand new. Why throw money down the tubes when you know why buying a new car isn't smart business.

Next article: Understanding Second Hand Car Value

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