Buyers Beware: Brand-New Vehicles Are A Waste Of Money

If you are considering buying a new car but you aren't sure whether this is a smart investment for your future or whether you should buy something that is used instead, it's time to get educated. You want to know the pros and cons before making a decision, and you don't want to just assume that if you buy a brand-new car, you aren't going to have any problems. Here are some of the things people don't realize about new cars.

Value Is Instantly Lost

As soon as you are the owner of a brand-new car and you drive it from the dealership to your home, it's going to decrease in value significantly. This vehicle is no longer brand new, no matter how many miles it has on it, and it would be unlikely that someone would want to pay the brand-new sticker price you paid in order for you to break even on the loan you took out.

Avoid Debt at all Costs

It's best to avoid debt at all costs if you can, both so you don't have to worry about making monthly payments and because you want to have a low debt-to-income ratio. You want to avoid debt by getting a car that you can afford to purchase without a loan or by taking out a loan for the least amount possible. Putting everything that you have down and only taking out a loan for half the value of the car would even be ideal.

You Could Lose Thousands Over Time

You could end up losing thousands of dollars over time if you continue the pattern of buying new vehicles when you need a car instead of buying used. This could end up preventing you from getting the house you want, retiring when you need to, and more in the future, so it's best to be smart and save that money.

When you go to the auto dealership and you see that there are a lot of great-looking new cars, you should instead consider finding a used model of the vehicle you love that has low mileage and was well taken care of. Used cars that are coming off a lease are often a reliable buy because you know what dealership they were maintained at, and the vehicle hasn't been on the road for a decade. Shop around, compare prices and be smart with your money. Contact a used car dealership to learn more.

About Me

Buying a New Car from an Auto Dealer

Hi. My name is Beth Wilson, and I want to thank you for stopping by my website. I recently purchased my very first new car. I’ve always had used cars in the past. To be honest, as excited as I was to be able to buy a new car, I was also scared. I had heard so many horror stories about car dealers ripping people off. Thankfully, my experience was nothing but pleasant. Prior to stepping foot into the car dealership, I did a good deal of research about the vehicles I was interested in. I was able to carry on an educated conversation with the salesperson and didn’t feel the least bit intimidated. I would like to share my shopping experience with you in the hope that you will find some valuable tips.