When I was looking to buy my first car I mean the car that I actually got to pick out myself and finance myself, people tried to give me advice saying buying a used car was so much better. There are perks to buying a used car, do not get me wrong. However, the benefits of having a brand new car definitely outweighed buying a used car.
People were shocked that I bought a brand new car, I was shocked myself. I mean this car had only 10 miles on it. I had never been in a car that ran that smooth. It was perfect from the first time I sat in it 7 years ago and to this day still runs as perfect as ever.
So, why did I choose to buy a brand new car? I am sure if you are like everyone else you are thinking that was a waste of money. Why on Earth would anyone buy a brand new car? Am I right? Well, that is why I am writing this to tell you the reasons why you should buy a new car instead of used car.
Interest rates can kill you if you are not careful. In fact, I would say that interest rates are what gets people in trouble when they take out credit on a credit card. I feel as though most people do not understand what an interest rate is or how it works and that gets them into trouble. Do not be one of these people. Listen to what the finance department says about your interest rate. Sometimes you will find that the interest rate on a used car is higher than buying a new car. Hence, this increases your monthly payment.
I do not like to use the word cheap because in today’s world nothing is cheap! However, sometimes or most of the time you will find that in the long run it is less expensive to buy a new car than buying a used car. Even if the price tag says 10,000 dollars on a used car and 21,000 on a new car it can still be less expensive. The banks have to make their money somehow so they generally higher the interest rate as stated above. By them increasing the interest rate on a used car not only will it make your monthly payment more, but in the end you will find that you have paid more for your car than buying a new car. At least this was the case when I bought my car.
Knowing Your Car
One of the benefits of buying your car off the show case floor is you know your car. What do I mean when I say this? Well, I mean you do not know for sure what has happened in a used cars past life but if you buy a car brand new you know for sure if it has been in a wreck or not; you know if it has ever had problems with the engine; you know if the A/C has ever gone out; you know everything about that car.
When you buy something with a high price tag such as a car do you not want to be guaranteed it will be fixed if something happens to it shortly after you purchase the vehicle? When you buy a used car it is very unlikely that you will get a warranty guaranteeing you that your car will be fixed. However, if you buy your car brand new you get that peace of mind that your car is covered. A new car comes with a warranty. Many warranties, like mine, comes with free oil changes up to a certain amount of miles on the car. It was a great benefit of buying a car brand new.
Believe it or not you can get discounts for buying a new car. For instance, I was able to get a discount for being a first time buyer; for being a college student; and for buying on a holiday. So even though the ticket price was something like 23,000 dollars, I only had to finance 19,000 when it was all said and done. Which meant I was only 4,000 dollars more than what a used car would of cost me.
So, I am assuming if you read this article you are looking to purchase a car in the near future. I am also going to assume that you are a first time car buyer or maybe it has been a while since you have had to buy a car. Let me just tell you how happy I am that I bought my car brand new off the show case floor. My car is still running just fine 7 years later and I know everything that has happened to it, there is no guessing as to where the scratches and dents came from.
I am also glad I listened to what the financial people were telling me. I was young but my degree is in business administration with a concentration in healthcare administration so I already knew a little about finances. The best advice I can give is do not just look at the overall ticket price look at the long run and how much you would have to pay out total. Listen to the discounts because like me, you can probably get a brand new car for the price of a used car or close to it.