It seems like in the personal finance world, some completely ignore the option of buying a new car. However, there are many positives of buying a new car, and I wanted to share those with you today. Some people love used cars, whereas others prefer to buy new cars. Continue reading below to see if you should buy your next car as a new one.
Your car insurance rate may actually be cheaper with a new car.
You might be thinking “that is just not possible,” but it can actually happen. I used to drive a 20-year-old car and the car insurance was actually more expensive and all I had was liability car insurance, whereas now I am fully insured. I’m not sure why it is so much cheaper now, but in many cases (of course, this also depends on your driving pattern), driving a new car can actually lower your car insurance bill because they are usually safer.
There are so many safety features in new cars today, and car insurance companies love all of the new features. If a car is safer, then this can lower the costs for them because you might have a lower chance of submitting a medical claim or an accident claim.
Dealerships usually offer better deals on new cars.
If you are buying directly from a new car dealer, then they may be able to give you a better deal than a used car. This is because the car dealerships are usually paid bonus money on the side for each car that they sell, so they can make up for losses by recouping the bonuses that they are hoping to make.
They also may be able to offer you a better price on your trade in (if you decide to trade in your old car) because of this as well. They usually just have more room with a new car price than a used car price. With a used car, there is usually only one way they make money, and that is by pricing the car higher than what they bought it for, there are usually no bonuses paid to the dealership for selling a used car (at least none that I have ever heard of or that I know about).
If you buy a new car, then you may be able to secure better financing rates, as a suggestion than if you were buying and trying to finance a used car.
A new car may get better gas mileage.
The world is constantly changing. You hardly see cars anymore than get less than 15 miles to the gallon, or even 20 miles to the gallon. Newer cars these days usually receive much better gas mileage, which can mean a great deal of savings if you drive to your job, to your school, to your hobby, and so on.
Do you plan on buying a new or used car for your next car purchase?
Flickr image by Maryland GovPics