Pros and Cons for Purchasing New Vehicles

January 13th, 2020 by

Purchasing a vehicle is a big investment that will play a big role when it comes to finances. Some may prefer to buy new and others may prefer to buy used. There is a lot to consider when buying a brand-new car. Here we dive in to the pros and cons of buying a new car.

Pros

Interest Rates

The great thing about buying new is most financial institution will give you extremely low interest rates. The resale value for a brand new car will always be easier to predict compared to a used car.

Latest Technological Designs

Unlike older cars, newer cars will always have the latest technology, gizmos, and other gadgets that come from today’s tech. You will find Bluetooth-controlled interfaces, touchscreen-command units, and other technology you won’t find with older vehicles.

Better Warranties

Brand new cars come with warranties that can extend out three to five years or until your car reaches a certain amount of mileage. These warranties can cover engine, transmission, and even electrical.

First Owner

The best thing about buying a brand-new car is you are the first owner of the vehicle. You won’t have to worry the interior being worn down or having to be restored. You feel a sense of pride of being the first owner when you drive off the lot with your brand new car from the certified Hyundai in Muncie.

Cons

Break-in Period

Some manufacturers require a break-in period for the vehicle. You may have to be gentle in use for the first 1,000 to 2,000 miles of driving. This means not revving the engine, limiting driving to a certain speed limit, or not driving past a past a certain mileage per day.

Depreciation

A brand new car can depreciate as much as 10% when you drive it off the lot. Another 20% will go down once a year goes by.

Longer Payment Terms

The payment terms for brand new cars may as much as 72 months due to the higher price of a brand new car. This may end up costing you more in interest if you choose a plan with longer payment terms. The best thing you can do is pick a payment plan that is between 55 to 60 months to ensure you don’t end up paying too much in interest.

Kw: certified hyundai Muncie

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