What are the pros and cons of having a new car?
Asked by: Justice Zemlak Sr. | Last update: September 17, 2025Score: 4.8/5 (62 votes)
- Pro #1: Latest Technology and Safety Features. One of the biggest advantages of getting a brand-new car is having access to all the latest technology and safety features. ...
- Pro #2: Peace of Mind. ...
- Con #2: Monthly Payments. ...
- Pro #3: Personalization. ...
- Con #3: Insurance and Taxes.
What are the pros and cons of a new car?
- Pros of Buying a New Car. ...
- New cars have the newest features. ...
- You may be eligible for a great financing offer. ...
- New cars might have a better warranty. ...
- You can customize the vehicle. ...
- Cons of Buying a New Car. ...
- It's more expensive. ...
- New cars often depreciate at a faster rate.
Why do people say not to buy a brand new car?
Higher Costs: New cars typically come with a higher purchase price than used cars. Additionally, insurance premiums for new cars are often higher, which can add to the overall cost of ownership.
Is buying a new car a money mistake?
Buying a new car is always a financial mistake unless you buy something that is hard to find and is appreciating in value so you can sell it in a year and not lose money. The vast majority of new cars lose thousands of dollars in value as soon as you leave the dealership lot, and that doesn't include finance charges.
What is the biggest advantage of buying a new car?
New cars offer updated technology, comprehensive safety features, and comprehensive warranties, making them an attractive option for many buyers. On the other hand, used cars can provide substantial savings and lower insurance costs, although they might lack some of the modern amenities found in new vehicles.
Buying an Electric Car: PROS & CONS ( in 5 Min! )
Why newer cars are better?
Crash avoidance technology and driver alerts in modern cars also protect lives on the road. Newer vehicles also tend to absorb bumps, minimize noises, and offer adjustable driving positions for better access to the controls.
How much does a new car depreciate when you drive it off the lot?
A car loses about 10% of its value, on average, as soon as it's driven off the lot. In three years, it has often lost 50%.
Why is buying a new car a waste of money?
For money experts like Ramsey and Suze Orman, there's no rationalization for spending an enormous amount of money on something that depreciates quickly. Per Carfax, cars lose 20% of their value in the first year of ownership and retain just 40% of their original value after five years.
How long does Suze Orman say to keep a car?
“When I buy a car, I keep it for at least 10 to 12 to 15 years or longer,” Orman said. “Right now, I am going on the 12th year that I have owned my car and I have no plans of getting rid of that car for years to come.” Orman's approach mirrors the evolving behavior of American car owners.
How long to keep a new car to make it worth it?
A car lacking equity has no value or even negative value in a replacement car transaction. The average length for keeping a new car is about 8 years. When valuing a used car, 12,000 annual miles is considered average.
Why is it not smart to buy a new car?
Buying a new car is hard on the wallet. If you're using an auto loan to finance the purchase, you'll most likely borrow more than you would with a used car and end up paying more interest over time. Quick to depreciate. New cars depreciate more quickly than their used counterparts.
Can a brand new car have problems?
Have you ever bought a car and begun to have problems with it shortly after? Perhaps your car makes strange noises or doesn't accelerate as quickly as it used to. These are common issues that many people face when buying a new car.
What if I regret buying a new car?
Sometimes people will excitedly buy a car that is too much for their budget. In cases of buyer's remorse, Eleazer said that the dealer might be willing to place the person in a different vehicle or one with a lower purchase price.
How many annual miles should you purchase?
The average car gets in 10,000 to 12,000 miles per year, so used cars with an annual average lower than that can be considered as having good mileage.
Do new cars last long?
Much comes down to keeping your car well maintained. If you follow the manufacturer's service intervals, a modern car from a brand known for reliability should be capable of 200,000 miles or more.
Should I buy a car now or wait until 2024?
Ultimately, the best time to buy a car is when you need one. But if you can wait, you may be able to benefit from lower prices and interest rates in 2024. Just don't expect huge savings.
What is the best number of years to keep a car?
In conclusion, the optimal time to keep a car for the best value typically falls between three to five years after purchase. Understanding depreciation, market trends, and personal circumstances can help you make informed decisions about when to sell.
Is it better to lease or buy a car suze orman?
During her November appearance on the show, Wallace asked Orman whether it was better to lease or buy a car and told her that he leases a car. Orman did not hold back, telling Wallace why she believed leasing a car was not a good use of his money. Instead, she believes that buying the car is the better option.
How many years should you finance a car?
NerdWallet recommends financing new cars for no more than 60 months and used cars for no more than 36 months. These maximums can help you avoid some of the negative outcomes of long-term loans.
What are three cons of buying a new car?
- The price of a new car is typically much more expensive than if you bought the vehicle used.
- Be prepared to pay much more in sales tax.
- New vehicles are said to lose up to 20 percent of their value as soon as you drive off the lot.
What does Dave Ramsey say about buying a new car?
The best advise for a new vehicle is if you want a new vehicle, run it to the ground. Keep it for the life of it. Get your money worth. Then the investment was worth it.
Why do you throw money in a new car?
There is a practice in New Jersey and New York of tossing a few coins onto the floor of a newly purchased car as a sign of good luck. This practice originated as a practical one. Because of the area's many toll roads, many drivers would carry change in their cars.
Why are insurance costs usually higher for new cars?
Depreciation and replacement value
When insuring a car, a major factor that affects cost is the vehicle's value. New cars generally have higher values so insurers consider this when determining premiums. Additionally, new cars can experience fast depreciation.
How old is the average American car?
The future market
At 12.6 years old, the average vehicle age in the United States is at a record high but the newest cars on the market are entering the next era of automotive technology.