Why Buying a New Car May Not Save you Money.

Posted Friday, May 07, 2021

Thinking that buying a new car will save you money on gas, and repair bills, and down time? Think again. The calculator never lies, and when it comes to purchasing a vehicle it may save you a lot of money.

We’ve all been there; our daily driver isn’t looking as good as it used to. We’re dreaming of less trips to the gas pump and those repair bills are aggravating our wallet. So we start telling ourselves that buying a new car might be the answer to all our problems. But if making a sound financial decision is in the forefront of your list of priorities, buying a brand-new vehicle may set you back further than you think, and keep you from reaching your financial goals.

So let’s take a look at the top reasons why you may be thinking that buying a new car may save you money, and why it might not be such a great idea after all

1. Better Gas Mileage
When compared to the vehicles of the past, new cars often get better fuel mileage and when you take into account hybrid and all-electric technology, the differences can be astounding. But what does the calculator have to say about this?

Let’s say for argument’s sake that your new car payment is $400 for 72 months (we’re not going to bring compounding interest into this for simplicity’s sake). You’re thrilled, you got a new car and it gets 30 miles per gallon. You’re going to save so much money on gas, right?

A late-model used car may also get 30 miles per gallon, and your payments are $200 for
48 months.

The new car will take 6 years to pay off, and cost you over 29,000 dollars (again, we
We’re just talking principle, not interest). And it’s costing you $400 a month.

The late-model used car may take you 4 years to pay off, and it’s costing you $200
Less a month. Same gas mileage.

Moral of the story? Do you really want to wait SIX YEARS to be able to start enjoying
Your killer gas mileage? Why not start now?

2. Fewer Repair Bills
While as the miles add up most vehicles are bound to require repairs and the usual maintenance, a new car may not necessarily spend less time in the shop than a reliable late-model used vehicle.
Why?
Recalls and warranty work are just one of the facts of life, and when new models come out there can often be unforeseen problems that only time will reveal. Extended warranties can be spendy on a new car, and dealership services on recalls and said warrantied items can take your brand-new car out of commission for days or even weeks!
Late-model used vehicles have often already gone through this process, and are far more likely to be able to be serviced by more affordable repair shops (or even your mechanically inclined family friend).
And just like with gas mileage, your ROI on repair bill savings may take half a decade or more to realize due to the expense of your higher new-car monthly payment.

3. Less Down Time.
A properly maintained, late-model used car can give you and your family decades of use, and the process of buying a used car from a reputable dealership is often less time-consuming too. Used car inventory is always more dynamic than new car inventory because you have multiple years, trim levels, locations and options to choose from. And why spend ALL DAY buying a new car, when it can literally take you just a few hours?
If selection and time are important to you, consider buying used!

While buying a brand new car can be an exciting achievement, it rarely pencils out on paper as a money and time saver, and the calculator never lies!

Are you looking for a late model vehicle that fits your needs, your budget, AND your wants?

Check out our inventory, and make it an Epic day.

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