There’s nothing more satisfying than driving a brand new car off the lot. Sadly, a $20,000 vehicle loses more than $2,000 of its value the second you drive it off the lot. Ouch! Buying a new car isn’t everything it’s cracked up to be, huh? Here are some pros and cons buying a new car that will help you decide what is best for you.
First, let’s take a look at the perks of buying a new car (I’m not gonna lie, #2 is kinda nice).
1. You won’t have to worry about how the car was treated.
New cars feel safe and secure. Nothing can go wrong in zero miles. It’s assuring to know you’re the first owner.
2. You’ll totally impress your friends and neighbors.
New cars turn heads. Expect to receive compliments. Your co-workers will probably get jealous. All of this attention would make your ego happy as a lark.
3. You’ll have the most up-to-date safety features.
New cars are super advanced. They have neat safety features like autonomous braking and back-up cameras (whoa!). This technology reduces the odds of traffic accidents.
4. You’ll save money on gas.
New cars are fuel efficient. Government fuel efficiency standards are higher than ever. If you have a long commute, you won’t have to pay as much at the pump. The impact of this benefit depends on how much you drive.
Now let’s check out the not-so-good things about buying a car (#1 is brutally honest but must be considered).
1. You live in a consumerist culture.
New cars are status symbols. Most people don’t buy them for the right reason. As Dave Ramsey said, “We buy things we don’t need with money we don’t have to impress people we don’t like.”
2. Your car loses value the second you drive it off the lot.
New cars lose value fast. Their value drops 11% as soon as you complete the purchase. And it gets worse…
3. Your car will lose 75% of its value within five years.
New cars are terrible investments. They depreciate by roughly 15% every year. That means a $20,000 car would be worth $5,000 by year #5.
4. Your auto insurance will get more expensive.
New cars cost more money to replace. You can expect your insurance premium to increase. In reality, it’s more complicated than that. Insurance rates are influenced by safety, the likelihood of theft, and the cost of replacement parts. There are exceptions, but this is still a good rule of thumb because it’s true more often than not.
Buying a new car is awesome when you have the budget (and are doing it for the right reasons). Spend a few days considering the points on this pro/con list before you make a final decision to prevent regret.
Please share this blog with your friends so they can feel confident in their decision like you. Thanks! 🙂
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