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5 Reasons Why You Should Buy a New Car Instead of Used

Updated on July 14, 2011

Looking to replace your aging wheels or add another car to the family? Love the new car smell but afraid to take the plunge? It seems every bit of advice on the Internet tells you to buy a used car. Buying a new car, after all, will leave you absorbing all the depreciation. But I'm here to tell you there are plenty of good reasons to buy a new car. Not to mention all of the great new car deals out there to be had!

But before I begin, I ask you to consider my advice only in the context of your own means and situation. Don't overstretch your monthly budget for a new car. If you have bad credit, don't accept a loan with unreasonable terms. There is absolutely nothing wrong with buying a used car. And a used car is often the best option in tight situations.

Let's begin!

Source

1. Better Value Than in the Past

In terms of real money, new motor vehicle prices have actually decreased in the past few years. A look at reports of new car prices vs. inflation have shown that a dollar today will buy you more car than it used to. This is partly due to aggressive pricing in a down worldwide economy. But also more efficient processes and increased competition are keeping prices down.

At the same time, cars are more reliable, lasting longer, possessing better fuel efficiency, and holding their value better. It is not unreasonable to see a car last 15 or more years with proper maintenance. Used cars are becoming more and more expensive as depreciation isn't wiping out as much value as before. And when you do the math, depreciation really isn't that bad.

2. Favorable Loan Terms

According to Bankrate.com, the average new car loan has an interest rate of 5.42% while used vehicles pay 5.98%. While these rates will certainly fluctuate, new vehicles almost always receive preferable rates.

But the best deals can be found from the dealers themselves. Nearly all of the major car companies have been offering rates of 0% on new vehicles for those with good credit. While the deals are only offered for a short period, they tend to happen cyclically; wait a couple months and a new one should appear.

Also, many loans and leases can be had with zero down-payment. While this could be more costly when financing with high interest, combined with zero interest it is a winning situation. Just be aware of the consequences of being upside-down on your loan and the benefits of gap coverage.

3. Get What You Want

If you're going to be spending thousands of dollars on a new vehicle, you'd best be happy with your purchase. I'm not saying you should pay for every little upgrade that you think is cool. But make a list of the essentials you need and shop for those.

Depending on your area, however, it may be difficult to find a used car that satisfies your wants. Sure Internet buying with sites such as AutoTrader or EBay Motors have made buying a car online possible. But there are obvious risks when purchasing a car you have never seen in person.

When buying a new car, you have access to the dealer's entire inventory and often the inventory of other nearby new car dealers. And if you still can't find what you want, it is always possible to order a customized vehicle.

One of the best parts about buying new, though, is you can often get many additional upgrades at no cost. Make it clear to the salesman that additional features on an in-stock vehicle are too costly and push it out of your price-range. Suggest you'd like to buy soon and will take your business elsewhere, and he might just give you the additional features for free just to ensure the sale. Just make sure you have researched the vehicles and are up to speed on negotiating techiques.

4. Special Perks

Buy nearly any new car today and you will also be eligible for some excellent perks. Many dealers are offering $1000 or $1500 cash back. Others are offering free maintenance plans. While others still are offering free roadside assistance.

Take a vehicle that already costs less and lasts longer than those in the past, and add on additional value increasing perks like proper maintenance, and these deals are looking sweeter by the moment.

Some special groups can also receive additional perks. For example, new college graduates have many discounts available to them including:

  • Cashback Bonus
  • Deferred Payments
  • Better Interest Rates
  • Financing even with limited credit history
  • Roadside Assistance
  • and more!

To qualify for recent graduate deals, you usually must have graduated in the past 2 years or will be graduating in the next 6 months, as well as proof of employment and other basic requirements. Toyota, Nissan, Ford, Honda, Suzuki, Kia, and more all have special college programs.

There are also rebate programs for the military.

5. Peace of Mind

But perhaps the best reason to buy a new car is the peace of mind.

Knowing that your car has always been treated well. Knowing your car has received its maintenance. Knowing your car has fresh parts. Knowing your warranty will protect your car. Knowing you will get what you want.

The list goes on, but the reason is clear. Car buying can be a long and stressful experience. But buying new can reduce or even eliminate some of the hardest parts.

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    • kenneth avery profile image

      Kenneth Avery 

      3 years ago from Hamilton, Alabama

      Hi, LoganG.

      This was one fantastic read! Loved every word. I voted Up + all of the choices. Your graphics usage was superb. I like hubs like this. I urge you to keep up the great work and may you have a world of success on HubPages.

      Sincerely,

      Kenneth Avery

      Your Friend for Life

    • LoganG profile imageAUTHOR

      LoganG 

      6 years ago from Florida

      Thanks Pkittock. I just wanted to play devil's advocate a little since yours is definitely the more common view!

    • Pkittock profile image

      Pkittock 

      6 years ago from Minnesota

      All good points, although I generally advocate buying used.. These are definitely all good reasons to buy new!

    • LoganG profile imageAUTHOR

      LoganG 

      6 years ago from Florida

      Good call, tipstoretireearly! And that one has become especially true lately with all of the easy (and free!) tools to see what dealers actually pay and what other people are paying.

    • tipstoretireearly profile image

      tipstoretireearly 

      6 years ago from New York

      Thanks for the sound advice! I'd add another reason: its easier to buy a new car. There are many online resources for determining a reasonable price to pay for a new car, and its easier to negotiate with a dealer for its price. With a used car, in contrast, the price will depend on the mileage and condition of the car along with the used car marketplace in your area. So there's much more variability in used car prices, which makes them much more difficult to buy.

    • LoganG profile imageAUTHOR

      LoganG 

      7 years ago from Florida

      Thanks AllSuretyBonds! Glad you, too, got to experience the peace of mind!

    • AllSuretyBonds profile image

      AllSuretyBonds 

      7 years ago

      Great Hub. This are some good points that you have brought up. I like the last one about peace of mind. When I purchased my new car, I was very at ease knowing that nothing would be wrong with the car or engine.

    • LoganG profile imageAUTHOR

      LoganG 

      7 years ago from Florida

      Thanks Ben! It's great to hear that even those not in sales can agree with the benefits.

    • Ben Snowden profile image

      Ben Snowden 

      7 years ago from Peoria, IL

      This is some great advice. I work at a car dealership (not as a salesperson) and all of your tips are spot-on.

    • LoganG profile imageAUTHOR

      LoganG 

      7 years ago from Florida

      Bob, you are most welcome! Good luck with your purchase!

    • LoganG profile imageAUTHOR

      LoganG 

      7 years ago from Florida

      Those are all very excellent points, pricehunter. Thanks for the additional reasons!

    • profile image

      pricehunter 

      7 years ago

      good thing about new cars is they are dependable brand new also the newest tech is in it making the car more safe and more comfortable. Not to mention the fact that they are beautiful. Also who knows when the used needs fixing or how much it will cost atleast with a payment you know what your in for.

    • LoganG profile imageAUTHOR

      LoganG 

      7 years ago from Florida

      Good point, Shannon! Fits right in there with peace of mind :).

    • profile image

      Shannon Paulk 

      7 years ago

      One other great thing about a new car is that it comes with a car warranty already. While you can buy extended car warranties for used cars, sometimes it's just nice to have the warranty already handled. :)

    • LoganG profile imageAUTHOR

      LoganG 

      7 years ago from Florida

      Thanks for the anecdote, Wilderness! I definitely agree there are some really great used car deals out there. But like you said, they can require a lot of time and effort. Glad to hear yours worked out so well!

    • wilderness profile image

      Dan Harmon 

      7 years ago from Boise, Idaho

      You have some good thoughts here, although I generally buy used. My last car took me 6 months of looking on eBay, Craigslist and locally, but got me a 1 year old car for much less than I could do elsewhere. I had to drive 400 miles to get it, but it has turned out worthwhile.

    • LoganG profile imageAUTHOR

      LoganG 

      7 years ago from Florida

      Thanks newark used car! Good luck with your purchase!

    • profile image

      newark used car 

      7 years ago

      You have explained the tips with a nice manner. I'm going to buy one used cars soon.

      I also support your well formulated tips.

      Thank you so much.

    • LoganG profile imageAUTHOR

      LoganG 

      7 years ago from Florida

      Thanks rotl! I know I struggled with this issue last spring and found very few resources justifying a new car (hence this hub). I will definitely have to check out the forum and add my two cents!

    • rotl profile image

      rotl 

      7 years ago from Florida

      You bring up some really good points. This is a topic many people struggle with... just the other day there was a forum thread about this.

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