Everyone has their own individual needs when it comes to the car they want and the vehicle financing they can get. What might work for one person may be a bad option for another person. In this blog post we discuss the various benefits and drawbacks of buying a new car:
Benefits of buying a new car
- It’s brand new. Everything from the smell to the tyre quality are brand spanking new. The car would probably be covered by some kind of warranty and no other previous owner could have damaged it in any way.
- You don’t have to worry about how the car was driven or maintained, seeing as you will be the first person driving it.
- New cars are usually much more fuel efficient than second hand cars.
Drawbacks of buying a new car
- You lose a lot of money as soon as you drive it out of the car dealership’s parking lot. In many cases, you can lose around 30% of the car’s value the minute you own the car.
- You could have problems reselling the vehicle, unless you are willing to drop your price significantly.
- You will be incurring higher debt and – due to the fact a new car loses so much value so quickly – you will be losing a lot of capital.