Why You Shouldn’t Buy a New Car

29 Mar

Posted by Sunny as Cars, Money

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Whenever the new year rolls around car companies get excited and start their marketing on their latest models. We, as consumers, have a natural reaction of actually wanting the latest models. People who buy new cars are actually wasting so much money by doing so. Consumer reports show that people save more money in investing on a used car than buying a new car.

Whenever a new car is bought the buyer looses around $4,000 after signing the title and driving off with the car from the lot. Dealers give the latest model cars out for lease; by leasing them out the cars’ value goes down. Most cars that are leased out can’t be driven for more than 10,000 miles per year, which keeps the millage of the cars low yet lowers the cars’ price for being used. Based on that fact the new cars are driven to a minimum to medium millages on lease, buying them used would be great investments.

The car on the left is a 2006 Honda Civic. This car is an excellent car for driving and saving on gas. If a person had interest in getting this car, the best time to get one of these would be at the end of the 2007 year.

So, the next time you’re out for car shopping think smart financially and purchase a car that is used and not new. By purchasing a used car, you’re saving money and investing smart in the long run.

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4 Responses

tbd

March 29th, 2007 at 2:54 pm

1

2 Things:

1. Cars are not investments.
2. A lot of people can afford to pay for the brand new models, regardless of the financial loss.
Sunny

March 29th, 2007 at 6:45 pm

2

I disagree, when some buy a car they consider the resale value and how much the resale value would be after using it for a certain period of time.

In American there is a national debt problem, and they can afford it but most people usually buy it on credit.
tbd

March 29th, 2007 at 9:23 pm

3

1. Sure people look at resale value, but that’s not an investment. Investments are expected to grow, while it’s common knowledge that if you buy a used car, it’s value will decline as soon as you take it out of the lot.

2. Yeah, a lot of people buy cars on credit. So what? You can’t expect people to write a check for a $40K car outright. People also buy homes on credit as well. Does that mean they cankt afford them?
AruntheACE

July 22nd, 2007 at 1:32 am

4

Most people don’t see cars as investment. Its just for luxury. What to do if an old car sucks?? Am not a mechanic!!