If you’re reading this, you’re probably shopping for a car right now.
One of the first questions you should ask yourself is, “What kind of car do I want to buy?” Then the very next question you’ll be thinking is, “What kind of car can I afford?” Let’s help answer those questions to narrow down your choices before you visit the dealership’s lot.
Check out our list of pros and cons to weigh your options and optimize your car buying experience.
New Cars
There is nothing better than being the first to use a brand new car, truck, or SUV. Not only do new vehicles come with that “new car smell,” but they also come with minimal to no miles on them and are equipped with the newest technology the industry has to offer! Plus, did you know that you can save money on financing a new car? Interest rates are typically lower for a new car because lenders know the value of it and also know that the borrower will pay back the loan. On top of a low interest rate, some manufacturers will offer a cash rebate or even a 0% interest rate for a certain amount of time, saving you even more money in the long run.
Even though financing a new vehicle can save you money on interest, auto insurance and sales tax are still going to be rather pricey. Usually, the sales tax isn’t included in the advertised pricing, so when you review the bill, you may be shocked by how much is added on. The Department of Revenue website can tell you what your local sales tax rate is. The other pricey component to a new car is auto insurance. For a new vehicle, most lenders will require collision, comprehensive, and gap insurance. These insurance packages can add up quickly and make your new car more expensive than you initially thought it would be.
Pros
- Cheaper to finance (low interest rate)
- Manufacturer warranty
- Little to no miles
- Find the exact model and trim you’re looking for
- Finance and special offers through manufacturer
- New technology
- No waiting for the title
Cons
- Price
- Faster depreciation rate
- Expensive sales tax and auto insurance
Car shopping can be both a wonderful and frustrating experience. There are so many choices to pick from, it’s hard to decide where to start. For those who don’t think a new vehicle is the best option for them, stay tuned for next week’s blog about the benefits and drawbacks of buying used vehicles.
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