Anybody that is shopping for a car must decide whether they want to buy one that is new or used. Used cars tend to be much cheaper, but the majority of people prefer buying new cars instead.
One study from Edmunds found that 43% of car buyers would only purchase a new car, while only 24% would only be open to buying a used one. This study clearly shows that the benefits of new cars are pretty substantial if more people would rather pay a premium for them. Here are some of the reasons that people would rather buy a new vehicle.
Newer Safety Features
New vehicles are equipped with a number of safety features that older models may not have. These include anti-lock brakes, lane departure warnings and equipment to monitor blind spots. These new features have been shown to help lower the risk of accidents considerably.
Lower Interest Rates
You can generally get a better price when buying a used car, but you will probably also end up paying a higher interest rate. There are a couple of reasons for this. First of all, dealers want to encourage people to buy new cars, so they offer better terms. Newer cars also have a better resale value, which helps protect the lender if you can’t make your payments.
Interest rates for loans on new cars are usually 1-2% lower than used vehicles. This can make a significant difference over time.
Better Fuel Efficiency
Manufacturers have found new ways to make vehicles more fuel efficient over time. They are making this more of a priority as we reach peak oil capacity. This means that people that buy new vehicles can end up saving hundreds of dollars in fuel costs every year. A number of car companies are also producing green alternatives that are far more fuel efficient or don’t rely on fossil fuels at all.
New vehicles obviously tend to be in much better condition than used cars. This is particularly true for used cars that used to be rental cars, because they tend to be more beaten up.
Of course, there can always be some manufacturing glitches with new vehicles too, so it is always a good idea to have them inspected by a mechanic. However, the probability is much lower. You should buy a new car if you don’t want to take the risk that it will have serious problems.