Why Opting For New Cars Makes More Sense Than Buying Used Cars Now?
Updated August 12, 2014
If you are a thoughtful spender and want to make the most of your money, you may consider buying used cars to save money. However, this is not the most advisable solution today. In fact, buying a new car is considered to be a more economically viable solution today. This article offers a discussion on why experts are suggesting people to choose new cars instead of a used car to save money.
- Better incentives on new car – Currently, the market for used cars is up by about 23% while new cars sales are low by 34%. Hence, going by the law of demand and supply, prices for used cars are up while the dealers are forced to offer more sops and incentives for the new car buyers.
- Better finance on new car – Credit terms are lot easier than these were about year or two ago. If you are a smart consumer you can compare finance terms offered by different banks and credit unions and negotiate a favorable deal.
- New cars are more fuel efficient – Technology advances by the day, but these days, carmakers are working harder to offer consumers more fuel-efficient cars to help them sail through the tough economic times. Many car brands are coming up with hybrid and clean-diesel makes of their car as these are more economic on fuel and help people save money. Besides, carmakers are now coming up with six gears unlike 3-4 gears of yester years which further boost fuel efficiency. Given the steep price of fuel today, it makes sense to buy a new fuel efficient car rather than fuel-gulping used car.
- New cars are better performing and longer lasting – New cars are also designed to be more powerful and longer lasting thereby making them more economic as compared to purchasing used cars.
- Old cars may require greater maintenance cost – One of the greatest downside of buying used cars is that its best years has already gone by when you purchase them. Older cars may therefore require expenditure on maintenance. Besides, it will be a hassle if your car stops down when you are on your way for an urgent meeting.
- It’s tough to choose a good used car – Buying a well-maintained used car is not everyone’s cup of tea. There are many scrupulous dealers out there on the market waiting to pass on a poorly maintained car at a steep price. You really need to be smart to pick a reasonably priced, well maintained car. Hence, if you are not smart enough your used car may turn out to be more expensive that you believe.
So, right now, buying new cars make more economic sense than purchasing used cars. However, this scenario may not last long. Once the demand for new car increases, the incentives are bound to go. Besides, these more fuel-economic new cars make come in the used car market in a couple of years; hence it will make more sense to buy used cars.
Besides, if you are buying posh cars such as BMW it still makes financial sense to buy BMW used car as compared to new BMW cars. This is because you have the option to buy Certified Pre-Owned (CPO) BMW cars which come with the manufacturer’s certification and additional warranty so you are sure of your investment. Besides, BMW cars are excellent in performance and long-lasting, making it financially viable to buy BMW used car if you don’t want to spend money on a new car.
Brett Michael Williams believes today it makes economically more sense to buy a new car rather than a used car. However, if you want to buy a luxurious BMW on a budget, it may still make sense to buy BMW used car as compared to new BMW cars.
Categories: Gear Grinding