• http://www.debt-tips.com/blog/ KDB

    All good reasons to buy a new car – if you can afford it. But car costs have gotten so far out of hand that I wouldn’t buy anything newer than 2 years old unless I had plenty of dispoable income.

  • Fabian

    Financially there are never good reasons to buy a new car. First used models come on the market after less than 6 months (demos, rentals, buyer’s remorse). If, by paying 5,000 miles you get the 20% first year depreciation, it’s a good deal and you get the latest technological advances. The only reason to buy new is passion. The exact color, the exact trim and options, the smell and knowing that nobody picked his nose in it. It can be priceless if you can really afford it.

  • Blinky

    The $4000 tax credit on the Civic GX expired in 2010. Some states still give a state credit.

  • Ling Chi

    A lot of poor people griping about how expensive cars are. Time to re-assess your life choices!

  • John Mith

    This article is misleading. Yes if your buying a “commodity” disposable car that you will throw away after the warranty has run out and you need to invest in repairs new can be a better option. If you want a higher quality car this is not good advice. For the price of a brand new commodity disposable car you can buy a used Mercedes Benz that even at a few years old has safety items and features that have not yet filtered down into the disposable car market. Nothing makes you smile more than rolling off the lot in a couple year old Mercedes for the same price some moron is paying for a car they will throw away in 5 years. Of course the skeptical here are saying “oh what about service and repair”. If you do your research and buy the right car with the right options and then research the service you can come out at about the same as a disposable car. Of course it does take thinking and research and many people just want to put gas in it and drive. If that’s the case perhaps you should consider using public transport and make traffic better for the rest of us. Or just stay home.

  • rhodies

    It’s all in the timing when you decide to purchase a new car. An example is the current March-April line up of Honda Civics, a car that retains very well it’s resale value. The new 2012 models are coming out NOW with impressive improved MPG ratings and fuel alternatives (gas, CNG, diesel). This leaves dealers jumping to clean house of their new 2011 models. We literally were looking for a 2008-2009 Civic with 24-30K miles, but found a new 2011 at a cheaper price with very little hassle-haggles. The used cars of this model were more expensive than the new car on several dealer lots. Go figure. Add to the fact that used car financing runs approximately 5% and Honda’s financing was less than (yes, less than) 1%. Our local dealer was almost out of Honda Civics (all models), but were still able to secure the color and model we wished by bringing in a car from another state 70 miles up the road. The savings on this new car more than compensated for the initial state tax and insurance cost. It is all in the timing.

  • TNT

    Very nice article, but a tad over-simplified. As someone who works in the auto industry, I’d like to make two points.

    The latest technology is only available on ALL NEW models. A vehicle model will generally run 5 years without a major re-design. Therefore, you can’t expect all the latest bells and whistles simply by buying a 2011 or 2012 vehicle, **you might be getting 2008 technology**. If you buy a car in this situation, you would be better off just buying a one- or two-year-old used vehicle from a reputable source.

    In addition, the start of an ALL NEW model has the inherent risks associated with any new product. It can sometimes have a few bugs that still need to be ironed out by the manufacturer – something that happens in every industry (e.g. the iPhone 4).

    Ads will generally differentiate when a car is “ALL NEW” (first year of a new model) or “REDESIGNED” (each of the next 4-5 years before a fully revamped model). As always, caveat emptor.

  • Shorebreak

    Currently, the prices for used vehicles are very high making the purchase of a new one more attractive. Often, incentives offered from the manufacturer will sweeten the deal negotiated with individual dealers. Financing often comes into play. Financial institutions generally offer lower interest rates for new versus used. Having said that, it boils down to what one can afford and personal taste. I have purchased equal amounts of used and new vehicles and have had good and bad experiences with both choices. My current vehicle was purchased new at a fair negotiated price for cash. As long as my budget allows it, I will probably continue to purchase new vehicles taking improvement in fuel mileage, safety advances, and added standard equipment in consideration.

  • SteveofSanRafael

    I purchased a new car because I was less savvy 13 years ago. I still have the car 135,000 miles, planning on using two more years. Here’s what I did, found out the ads come out in the paper on Friday and run all weekend. A __ at a low price. **While 2 or 3 last sometimes only one. Then I took Friday off after shopping for a month, and when the paper came out I bought the Toyota I wanted, but not in my first choice of color. If you do this you have to be ready with the down payment, ready to sign right then.

  • http://www.rayskillmanchevrolet.com/section/secondary/auto-dealer-indianapolis-service-specials/ Tyra Shortino

    There are lots of advantages when opting to buy a brand new car. Not only it gives a fully functional specs, but it also gives you the privilege of using it for almost five years without repairs or maintenance. Of course, if you’re driving with care and love, it will reward you back with less expenses.

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