There are good reasons to buy a new car. There are some not-so-good reasons too.
A car is an essential thing for most people. While public transportation may be an option for some city folks, for many people a car is a must for meeting a significant portion of their transportation needs. A car provides convenience, utility, independence, and our reliance on them is woven into the fabric of modern society.
Unfortunately cars dont last forever. Sooner or later thoughts turn to buying a new one. Some of the best and worst reasons for buying a new car are listed below.
5 Worst Reasons to Buy A New Car
1. Your Neighbor Bought a New Car
As I write this article Im aware that two of the closest neighbors to my house have purchased a new car in the last few months. Although the keeping up with the Jones incentive can be strong, its probably one of the worst reasons or influences to prompt your own car purchase. Be honest with yourself. If such a consideration is influencing your own decision to buy a new car, be aware its a big red flag.
2. Your Present Car is A Whole Year Old
While there are a few people around that purchase new cars every year (presumably because they can afford it), its an extremely costly way to own a car. New cars lose 15-20% of their original value each year. A car that cost $30,000 dollar new might be worth only $24,000 at the end of year one. The first years of a cars life are clearly the most expensive. So if your objective is to minimize the total cost of ownership then consider driving your cars a few years longer.
3. Its Summer!
The relief of warmer temperatures after a long winter seems to have a stimulating effect on the car buying instincts of some people. Ask any auto dealership and theyll tell you that springtime begins the busiest time of the year. So ask yourself this, as a consumer are you likely to get the best deal, most attention, highest quality purchase experience in car buying during busy times? Or if possible might buying a car during less busy months have some advantages?
4. Cant Pass Up A Great Deal
Maybe theres a current sales promotion thats especially attractive. A person might think It would be a shame to pass up buying a car thats such a great deal. While promotional incentives change from time to time (and some may be especially attractive), in most cases there are always promotions in effect. Car manufacturers compete not only on the basis of the products they sell, but also on their sales incentives. When one promotion expires another will usually replace it soon after. So make sure the perceived great deal is not your only reason to buy.
5. Youre Having a Bad Day (Month or Year)
While emotions are often a part of the car buying experience, indulging in car-buying therapy is an expensive way to lift ones spirits. Going out for ice cream might be a better choice.
A new car can provide an emotional boost for a time following the purchase. However, if the motivation for purchasing a car is mostly based on emotion, then the likelihood of a favorable outcome is greatly reduced.
5 Best Reasons to Buy A New Car
1. You Really Need One
If your car is nearing the end of its useful lifespan then theres little doubt that a new car is in your future. Todays top car brands can last for many years when properly maintained. Eventually the cost of car repairs no longer seems like a good investment. Thats additional confirmation that a new car purchase may be smarter than fixing up your old car.
2. To Save on Gas
A significant cost of car ownership is the fuel thats required to operate it. Newer cars have the most current advancements in fuel efficiency engineering. Compared to a car thats 10 or more years old, a newer model might reduce monthly fuel costs by $50 or more a month. Its an easy calculation to make by factoring in your current cars mileage, monthly fuel expenses, and anticipated improved mileage in a possible new car.
3. To Improve Safety and Reliability
New cars also typically have numerous modern safety features built-in as standard equipment. While the most important safety equipment may still be the cars driver, technology plays a factor too. The safety ratings of cars are publicly available and many car buyers weigh them prominently in their purchase decisions. The reliability of a new car is also a consideration since being stranded by the roadside can be a safety risk too.
4. A New Car Fits Your Budget
Budgetary considerations are important to ensure a smart purchase, one that a car buyer wont regret soon after making the commitment. While virtually no one likes making car payments, an investment in personal transportation is an essential one for most people. Car payments, housing costs, food and clothing expenses are among the most basic of necessities.
Its smart to set your budget before ever setting foot in a car dealership showroom. Online payment calculators are available to help with budgeting hypotheticals. Once your budget is established then its up to you to be disciplined about sticking to it.
5. Youve Done Your Research
Buying a car is a significant investment. It not only affects a persons financial life, but also their safety and security. There are automobiles to fit the needs and preferences of every car buyer. To ensure the right purchase for you be prepared to invest some time in doing online research to identify the best candidate automobiles for purchase. Once your short list of possible car purchases is compiled, then visiting a dealership showroom to take a test drive and acquire additional information is the logical next step.