5 Reasons You Should Never Buy a Brand New Car
Are you contemplating the purchase of a vehicle? I know that all of the bells and whistles of a new car sound like it would be so great, but there are some pretty solid reasons why you should stick to buying just used cars.
Here are 5 reasons you should never buy a brand new car:
- They are expensive. Yeah, that’s obvious, but brand new cars are expensive. Did you know that the average new car loan is $30,000? That is a lot of money. You are going to save a significant amount of money if you buy a used version of the car you are looking for.
- Depreciation. New cars lose a lot of their value once you drive it off of that lot. Like a lot. The average new car loses 20% of its value in the first year, some cars can lose up to half of their value! This is a great reason to reconsider your idea to buy a new car.
- Interest payment. This goes along with how expensive they are, but the more expensive a car is, the more interest you will be paying on it.
- Higher insurance rates. New cars will cost you more to insure it. Because they have a higher payout, the insurance companies will charge you more. A leading insurance company has released the numbers and have acknowledged that you will save, on average, over $700 per year when you buy a new car.
- Door dings happen a lot. I know that this one is a materialistic view, but it is worth considering. When you drive around and park in busy parking lot, you are likely to get door dings a lot. This is far more frustrating when you have a beautiful, shiny new car. If you buy a used car, you still don’t want to get dents and dings of course, but it’s less stressful.
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