10 Reasons Why You Should Not Buy a New Car

Jennifer | August 26, 2011 | 0 Comments

Buy a used car

1. Depreciation

That shiny new car can lose thousands of dollars in value, the minute you drive it off the dealer’s lot. A carefully selected used car (recent model and in excellent condition) will offer the features and qualities of a new car without the high price – and any factory bugs will have been worked out. So, go for a 2-3 year old car, and save big.

Cars built nowadays are more reliable

2. Reliability

Back in the day, it might have been smarter to buy new cars, because older cars didn’t live long. Cars used to start having problems around the 75,000-mile mark, and if you had 100,000 miles on your vehicle, you had a real geezer on your hands. Not any more. For quite a while now, cars have been built much more reliably – so you can buy a used car with a fair amount of miles and still be assured of a long life to come.

Car insurance costs for new cars may be higher

3. Insurance

You’ll likely pay more to insure a brand new car. Some insurance companies raise the rates of new cars because they have the most chance of their parts being recalled. Also, crash rates for new cars are sometimes higher than for older cars. Again, this may be due to new cars having safety recalls. And of course, you’ll have to buy collision coverage for a new car, whereas that would be optional if you buy an older vehicle for cash.

Older car parts are usually cheaper

4. Parts

Parts for older cars are usually cheaper than new ones and are available in more places. You can shop for the best prices online, or even try some junkyards.

Be sure to check used cars for warranty options

5. Warranty

Sometimes people want to buy new cars for the sake of the warranty. But even then, the warranty won’t last you for the life of the car anyway. It varies but may be along the lines of 3 years/30,000 miles, whichever comes first. So, check the options for used cars. Some places can offer you a warranty for a used car, so you can enjoy some peace of mind.

Don’t get stuck trying to trade-in or sell a new sports car

6. Changes in Needs

Suppose you buy a new sports car. Then you meet the man/woman of your dreams and decide to start a family. Now you’re stuck trying to trade it in for a minivan. If you buy used, you won’t have to worry about a high-priced car loan to unload.

Choose a classic car and restore it

7. Older can be better

See if you can pick up a bargain on a classic, or soon-to-be-classic car. It will have more resale appeal than a plain boxy sedan – or, if you’re a motorhead, you can enjoy doing a restoration project.

Help the environment by buying used

8. Environmental issues

When you buy a used car, you keep it out of the junkyard. Just make sure to look for a used car that has good gas mileage. You won’t save money, or the environment, with an old gas guzzler.

Don’t take on a hefty car loan

9. Avoiding economic risks

Be honest with yourself – maybe after you tally the numbers, a new car is not a realistic option to begin with. In these uncertain economic times, it may not be wise to take on a hefty car loan. If you lose your job, that loan will become a huge headache

Calculate the cost of buying new or old

10. The Bottom Line

Still not convinced why it makes sense to buy a used car? Check for yourself to see that even with 0% financing, a new car can cost you more. Try this free calculator from Consumer Reports and you can compare all the costs of buying new vs. used cars.

Photo credit via Flickr (SeeMidTN.com (aka Brent), ASurroca, davesandford, jcrakow, aussiegall, Toyota UK, Martin Pettitt, stevelyon, Jeremy Brooks, Refracted Moments)