Is it ever worth buying a brand new car?

Question

As soon as you drive it out of the 'showroom' it loses money. You pay interest on the loan or finance. Cant understand why anyone would do this unless they have money to burn. No one would undertake such a financially negative agreement in business!

Answer 1

people like the status tho

Answer 2

It's only worth it in 1 circumstance. If you have so much money that losing £40,000 odd wouldn't mean anything much to you then you may as well for the snob-value. Otherwise there is no point. You buy a brand new car, pay through the nose, and have something no more reliable than a car you could pick up for £400 on Ebay.

I did it once, fortunately because the car had so many problems the manufacturer agreed to take it back and return my money. I then had no car and being self-employed I needed one quickly so I went on Ebay, and bought a 9year old Ford Scorpio for £400. Unlike the brand new Volvo I bought that spent as much time in the garage as it did on my drive, it hasn't put a foot wrong yet. So do I have any sympathy for people that lose massive amounts of money when they buy a brand new car? No chance. A fool and their money are soon parted, what better example of this is there?

Answer 3

It depends.

Financially, there are occasions when there is so much demand for a new model, and so few available, that the used value exceeds the new price.This generally happens with brand-new supercars, but has also happened to the original Audi TT, the early Subaru Impreza turbo, the Volvo XC90 and the Mini. Some people who had got early on the order list for the XC90 were able to drive them for a year, and then sell them for more than they paid new!

Then there is the issue of getting exactly the car you want. I bought a brand new car because I was able to order the exact specification I wanted (colour, options, etc.). I had to wait for it to be built to order, but I've got a car without any dodgy history, that has never sat on a dealer lot for weeks (or months even), and that's got all the equipment I want. I've had it three years, and intend to keep it at least another two years. I could have save maybe £1,000 by buying a used one, but it wouldn't have been exactly the spec I wanted, and may have been abused by a previous owner (hence be unreliable). £1,000 extra for five years in exactly the right car is worth paying.

My previous car was also built to order - it was a 1997 Rover 200, and I kept it for over 5 years. I've known lots of people who have bought used Rover 200s, and all had problems, whereas I had over 5 years of trouble-free motoring. That is worth more that the saving of buying used.

Answer 4

I've never bought a new car myself, but I know those that have, and depending on the car and how long they keep it it can be worth it.

Warranties, free servicing, no MOT's etc. etc. This can all be beneficial, plus the fact that they have a new car, it's all a valid benefit to them.

If you kept it for say 5 years (avg, loan repayment period) then I don't think you'll feel any pinch at all and should have only paid pennies for repairs (tyres, exhaust etc. if any) However, if you get bored with it after a couple of years, or can't afford repayments, and want to trade, be prepared for a big hit!!

Answer 5

No! If you can though go fo an Ex-Demo prob only have 4/5 thousand on the clock no instant depreciation and you still have the full warranty, plus all of the little squecks and rattles will have been irned out before letting the pulblic try. I got a bargain Toyota like this 3 years ago, lovely runner, smooth and got all the higher specs no problems at all.

Answer 6

You can buy some cars new and run them cheaper than many used cars half their price if you pick a model with good residuals.

People think Fiestas are the cheapest cars to run and they are cheap dont get me wrong. Did you know you could run a new mini for about the same and the list is about£4000 more in some cases.

New cars make people feel good, do you ever buy second hand clothes?

Answer 7

That depends. If you pay for the car IN FULL from the start and can afford regular and consistant maintenance, including oil changes, repair work, and recall work as well as maintain the overall vehicle, you can trade in the vehicle every few years for another new model.

My grandparents do this very successfully.

However, if you're having the car financed, and insured you don't really know what you may be up against. Buying older model cars insures that the lemons have been weeded out, and those that have any issues... I'm not saying too old, but 2-3 years is plenty.

Buying a car from a car rental place is good as well, the cars are well taken care of, have low mileage, and are priced well.

Answer 8

If you buy new you can specify all the things you want. Pay completely and get gap insurance (it pays out the difference if the car is a write off in the first three years= you get another new car.
There will be little else to pay out for over the next few years and you have a reliable car of your choice and colour.. not a compromise

Answer 9

Some are good deals now, Subaru doing free services for first 3 yrs and / or £3000 of fuel. Not bad. Different deals suit different people.

Some classics (morgan etc) are worth more after production, because the waiting list, but that don't apply to the cars us normal folk drive.

Good part ex and 0% finance can often beat a bank loan at an average rate, you need to do the maths, cover what you want to pay, how long you plan to keep it, mileage, dealer servicings etc.. balanced against depreciaition.

Answer 10

I have bought two new ones. A good choice if one intends to keep a long time. My 93 toyota is still as good as the day it was brought home.
My 2006 toyota was bought because I needed more space to haul people and my dogs.
Yes, I do keep them a long time, and in the case of the older toyotas, mine has only needed the usual service and a starter. That isn't bad for nearly 14 years of service.
One can spend loads keeping a used one on the road, expecially in more unreliable brands.

Answer 11

Well I have always bought a new truck every 2 years or 50K miles which ever came 1st BUT when I buy a new truck I get it last part of the year like in NOV. or DEC. so you still get one with 5 or 10 miles on it still the same year model but dealers must sell all remaining year models to make room for the next year models. Like I just bought A new 2006 F-150 sticker was $31,995 I got it for $21,500 that is a good deal and alot of people do that Like my 2004 Crown Vic it was a 2004 that the dealer had left over into 2005 and I got a car with only 120miles that Sticker-ed for $23,800 I got it for $ 14,200 I love the Crown Vic's so it is so far the only car I have not traded-in but I do get a new truck.