The make, the model, the features, and the cost must be considered before buying a car. But with so many options out there, you can feel confused and overwhelmed. So you can contact an advisor who can help you out.
Moreover, purchasing a new car is one of the biggest investments that comes after a house. This is why it is important to consider all the pros and cons before making this big decision.
1) Brand new car
The car you are purchasing is brand new, meaning it has come to you directly from the factory. So the car does not have any mechanical problems, has not been in an accident, and has very few miles on the odometer.
2) Low-interest rates & easy to buy
You can get low-interest rates according to your credit status. You can negotiate the price for the car at various dealerships. Moreover, it is easier to buy.
The car you purchase will have a manufacturer’s warranty for pre-decided years or number of miles. So usually, you can get coverage up to 3 years or 60,000 miles if things go wrong. This warranty is comprehensive and affordable coverage for your new car. Moreover, you can get an additional warranty from your dealer that may provide coverage beyond the manufacturer’s warranty.
4) Latest features and technology
New cars come with new features and technologies, and that is their perks. For example; navigation systems, self-parking, internet, better mileage, collision-proof systems, lower gas emission, among other much more exciting features. Moreover, new cars have newer and better safety features like assisted parking and blind-spot surveillance.
With new cars, you can easily get them custom-made according to your likes. You can get the specs and features you want in your car. You can get the interior changed, add new control systems, and order whatever you like in your car.
The benefits of buying a new car are very appealing. Let’s now look at the cons of purchasing a new car, so that you can decide what’s best for you.
1) Rapid depreciation expense
This is an important concern you need to consider. It is estimated that your new car’s value drops by 11% when you drive it away from the dealership. And after the 5 year period of paying off the loan, the car’s value is around 40% of its value at the time of purchase.
2) Rate of return on your investment
Purchasing a house in new developing areas can benefit you in the long run as the properties’ cost may increase due to increased development. But with new cars, that’s not the case. You do not get a good return on this investment.
Your new car may also have a higher insurance premium as premiums depend upon the driver’s age and how old the car is.
So after reading both the pros and cons of buying a new car, it is safe to assume that the pros of purchasing a new car outweigh the disadvantages. So you should make your investment fearlessly. If you still have concerns, then it’s best to seek an advisor.