The new VS used car debate is one of the most popular and controversial in the modern world. Purchasing a car is also an investment that many of us will make a considerable amount of times throughout adulthood, so it is important to get it right.
Many used car supporters offer persuasive but misguided reasons why purchasing a used car is better than investing in new. While purchasing a new car may initially set you back more than those who buy second-hand, we explore the varied factors that actually make new car owners end up on top. Whether you are looking for the latest convertible or family-friendly SUV, read on to find out why new cars are a better investment than used.
Warranty
One of the biggest advantages of purchasing a new car is that most will be covered by the factory warranty. We have all heard the cautionary tales of used car owners spending a fortune on bills from the mechanic as a multitude of hidden car problems suddenly come to light. Purchasing a car with full warranty gives you peace of mind in knowing that you will not be held liable for any large repair bills in the first few years of new car ownership.
Safety
While it is comforting to know that your new car is covered by a full warranty, it is even better to know that your new car is fresh from the factory floor and equipped with all of the latest and greatest safety features. There is no greater investment than protecting you and your family when you are on the road.
Fuel Efficiency
One of the most attractive advantages of purchasing a new car is that you receive all of the benefits of the latest advancements in technology. New cars have been equipped with new technology and parts that provide greater fuel efficiency than used or older model cars. These features can dramatically reduce the amount that you spend each month on petrol and other transportation costs.
The engine layout of any car is a complex design with a number of important moving parts. When this system works as planned, your vehicle’s maximum fuel efficiency will be achieved. However, there are numerous factors that negatively affect a car’s fuel efficiency. Many of these factors are simply the unavoidable by-products of the use of the car over an extended period of time. When you purchase a used car it is impossible to determine the current fuel efficiency of the vehicle without extended use. Many people will spend extra dollars to purchase a used, fuel-efficient model, only to discover poor fuel economy as a result of significant wear and tear.
Financing
Car dealerships offer significant incentives to new car buyers. One of the main advantages car dealerships can offer is cash rebates, meaning that you will end up paying a significant amount less than the sticker price on a new vehicle. Providers of car loans for new cars also offer better interest rates than those for used cars. These interest rate and cash rebate incentives, make new cars a more attractive investment than used cars.
Resale Value
One of the most important considerations when hunting for a new car is choosing a car that will hold its value. Whilst depreciation can tear a great chunk out of the value of your car, choosing a car with a strong resale value puts you ahead of used car owners. Certain car manufacturers and models hold stronger resale value than others. Before making the decision to purchase any model, it is essential to undertake significant research into how it may fare on the resale market.
While used car owners may be able to snag what appears to be a bargain, they will often receive no return on investment when it becomes time to move on to another vehicle. Many used cars are unable to be sold due to the significant wear and tear that results from multiple owners utilising the car. Used car owners are also often forced to purchase another vehicle only a few years (or even months) after purchasing a used car, whilst new car owners can receive decades of use from their vehicle before reselling for an amount that could be used to help their next purchase.
Cars are like any product in life, you pay for the value you receive. Purchasing a new car ensures that you receive the maximum warranty, safety features, technology and fuel efficiency that is available.
