The Pros and Cons of Buying a New Car

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Even in this down market, is it still a good idea to buy a new car instead of a pre-owned one? What are some of the advantages to doing so, and do they outweigh the disadvantages? Here are a few pros and cons to consider when deciding to buy a new car.

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Pros of Buying New

1. You have the ability to customize your vehicle from the beginning. If you like having the most control over your car, buying new allows you to get and order exactly what you are looking for.
2. The car is equipped with the latest style and technology, including the latest safety equipment. Because the car has not been through anything it is in optimal condition, which will give you peace of mind.
3. You receive a full manufacturer's warranty. Warranties rarely come with used vehicles, so that might be something to consider if it is a concern for you. Plus, a new vehicle technically lasts longer since there is no threat of potential abuse of surprises. In addition to the warranty, you will also get Lemon Law protection.
4. New cars generally come with a lower financing rate.
5. You get to enjoy the feel of driving a new car and that new car smell

Cons of Buying New

1. It will cost more. A higher price means higher monthly payments.
2. The value of a new car depreciates rapidly in the first few years of ownership. Some figures estimate that the value of a car depreciates between ,000 and ,000 the minute you drive it off the lot. New car buyers absorb the bulk of a vehicle's depreciation.
3. Insurance rates tend to be higher.
4. With used cars, there is less price variation between the same make and model.
5. Unless the price reaches a certain cut-off point, tax rates are also higher.

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