Buying a new car is one of the biggest investments you’ll ever make. The question that often arises is whether to buy new or used. Used cars can pose some major setbacks that you should consider. Buying new has many benefits, some of which are listed below.
Purchasing a new car gives you the opportunity to have the latest safety technology and other features, such as a navigation system, built into the vehicle. Dealers can now customize your vehicle with features that you want, and with the right combination of options, with specific interior and exterior colors. New cars also offer higher fuel efficiency and lower emissions. The market’s selection of hybrid vehicles, which provide high gas mileage and are better for the environment, is growing.
Lower Interest Rates
Many car dealerships offer lower finance rates or cash rebate incentives to new-car buyers. If you have a solid credit score, some new vehicles even qualify for zero-percent financing. Generally speaking, the older the car, the higher the interest rate will be. Banks also offer lower financing rates on new vehicles because the vehicles are worth more and have not already been hit by depreciation. However, it is important to keep an eye on the total cost of the vehicle: lower APR does not necessarily mean lower cost.
Clear Vehicle History
Purchasing a new vehicle can give you peace of mind. You know you are getting a vehicle with a clean history. You can obtain a used car’s history report, but there is no guarantee every accident or repair that happened to the vehicle was recorded. A new vehicle has seen no wear and tear, hasn’t been in any accidents and comes with that new car smell.
You can purchase warranties for a used car, but the best warranty, without paying extra, is a new car’s manufacturer warranty. Manufacturers provide warranties for new vehicles for at least three years, and they generally cover any repair or service the vehicle may need during the covered period of time. Most new car and truck warranties come with some degree of free roadside assistance. In addition, some automakers reimburse you and provide alternate transportation, if you are stranded far from home.
When you buy a used car there is a possibility that the vehicle will need repairs, costing you time and money. A new car should not need any maintenance until a couple of years after you purchased it, other than routine maintenance such as an oil change and tune up.