For those of you that are looking to buy your first car, I strongly suggest that you do not buy a new car. There are many reasons for this and I will outline them all. Keep in mind this is strictly my opinion, and may not reflect the opinions of other readers on my site.
As most people know, once you buy a new car it can depreciate up to 30% as soon as you drive it off the lot. That’s a lot to take. If you plan on keeping the car for a long time that is a different story but for the most part it’s something that can be quite daunting to individuals. When comparing to a used car, you don’t get this depreciation. In fact, if you bargain well, you could even sell the car for more money after you buy it! This will never happen with a new car unless you keep it for many, many years and it becomes a classic like a Mustang or Corvette or Camaro. See where I am going with this?
2. Dents and Dings on a New Car
For those of you that have bought a new car, you know how much it hurts to buy a brand new vehicle and one day after a shopping trip to Walmart some douche parks beside you and dings your door. Or, someone is jealous and they key your car. That hurts! Now, with a used car, it will still hurt but not nearly as bad. It’s just something to think about.
Generally, Insurance on a new car is more expensive than on a used car. Now, this may not be the case for all insurance companies but you really should do your homework on this. If you’re in the market for a certain type of car, call your insurance company and ask them how much a particular car will cost for insurance, comparing brand new to a few years old. You might be surprised at the difference!
4. Financing and Leasing
If you’re buying a new car, you’re going to pay significantly higher than a used car – in most cases. If you insist on a new car and are financing it, be sure to calculate the costs of the total purchase with interest over the life of your agreement. The amount of interest you will pay on the vehicle may shock you. With a cheaper used car, you will have lower payments and you might even be able to pay it off quicker with an option to accelerate your payments. You can also do this with a new car depending on your agreement, but with higher payments it may be more difficult unless you’ve got a great job and can afford it.
As you can see from a cost and sanity stand-point, buying a new car is a thrilling experience provided you can afford it and won’t freak out when you get a door ding, accident or have some jealous prick key your car. If you can stomach all of those then by all means go for it.
However, if you’re smart about finding a good used car and know what you are doing, then perhaps a used car is what you need. When shopping for a used car, bring a friend that is knowledgeable. It’s also good to find a trustworthy dealer like this used car dealer in Toronto, Canada.
Buying An Import
One thing that is important to mention that if you are buying an import, specifically a German car like a Mercedes-Benz, you should do some research on maintenance and also the cost of parts. Parts for these cars can be very expensive and if there is any benefit in buying a new car, it’s this – the warranty. On a used car you can buy a warranty from a used dealership but the jury is out still whether these are worth it or not.
If you’re a mechanic or at least mechanically inclined, you could probably do the work yourself. There’s many YouTube videos out there on how to fix common issues with import cars. Here’s an example below. Remember, a lot of these guys are amateurs so you do this at your own risk!