Friday, March 29, 2024

5 Reasons Why You Should Not Buy A New Car If You Are Under 30

By Bizna Brand Analyst – 5 Reasons Why You Should Not Buy A New Car If You Are Under 30

So you just graduated from college less than five years ago and happened to land a six figure job already. Congratulations! What’s up next? You may be wondering, “Should I buy a new car?”

For many people a car may be essential for getting around in the city, but a new car isn’t. Sorry to burst your dreams, but buying new just doesn’t stand up to financial scrutiny. In fact, the benefits of buying a used car far outweigh buying new.

Here are a few reasons to avoid buying a new car in lieu of a used car purchase.

(1). It’s a Luxury

For a person under 30, a new car is nothing more than a luxury. Yes, you heard that right. By definition, a luxury is something that isn’t strictly necessary. It’s natural to be attracted to a brand-new car, but the reality is it won’t get you to work any faster or better than a used one. Plus, unless you have no student loan debt left over after college, you already have your own home and have a really crazy salary, it’s a luxury that isn’t affordable for younger adults—even those who can technically pay for it.

(2). You Get Less Car for Your Money

If you’re looking to buy a car, you probably have a budget in mind. One of the benefits of buying a used car is that you’ll get a lot more car for your money. You can get a cool used Mitsubishi for the price of a new Vitz.

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(3) You Take the Depreciation Hit

When you’re living on a tight budget, great car buying advice dictates that value should be your main objective. That’s why a new car—as opposed to a used car—just doesn’t add up.

According to Consumer Reports, a car tends to lose about 45% of its value over the first four years of ownership. In other words, new car buyers are paying a huge premium simply because the car is newer—not necessarily better—than a car that’s a year or two older. That’s just bad value..

(4).  Your Car Insurance May be Higher

You’ll typically pay more insurance for a newer car than a used one. The equation is simple: The more a car is worth the more insurance you’ll pay.

Buy a used car outright and it may even pay to skip collision insurance altogether, which can mean hundreds in savings each year. A new car is also likely to hit younger drivers with a shorter driving history harder, due to higher insurance rates.

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