When purchasing a vehicle, one of the largest decisions one makes is determining whether to purchase new or used. While purchasing a new car may allow you to soak in that well-loved new car smell for a few weeks, it might not be the best financial decision. From spending more money to getting a low return on investment, there are several downsides to purchasing a brand-new vehicle. To avoid making a poor financial decision, it’s important to be aware of the negative aspects of purchasing a new car. Here’s why you shouldn’t buy a brand-new car.
New cars cost a lot more
One of the many benefits of purchasing a salvaged or used vehicle is that they cost a fraction of the cost of new cars. As such, those looking to save money should avoid purchasing a brand-new car—especially since there are many used cars for sale in near-perfect conditions. Thus, you can save thousands of dollars and still get a great vehicle by purchasing used rather than new.
The value of new cars depreciates quickly
For such a substantial purchase, brand-new cars offer a very low return on investment. The value of a new car depreciates substantially right when you drive it off the property.
In addition to losing a large portion of its value in your first few seconds of owning it, a new vehicle will continue to lose most of its value in the first few years. The more your car costs, the more value it loses. If you ever end up wanting to sell your car in the future, you would lose out on a huge amount of money. When considering the high depreciation of value, purchasing a new car isn’t the best financial investment.
New cars come with higher insurance costs
Replacement values for new cars are far higher than used models. As such, new cars typically come with higher insurance payments. Such premiums are yet another way that brand-new cars can break your budget.
