Should You Buy a Brand New Car?Application X
Buying a new car can be expensive, and may not be the best option for everybody. Al’s Auto Blog professionals have a few things to say on the matter.
Is buying a new car right for you?
Brand new cars are a “financial triple-threat” because (1) You borrow money at interest to buy an asset that you (2) have to pay to maintain while it (3) drastically depreciates in value.
If you’re in the market for a new car, here are some helpful tips to consider:
- A new car will depreciate in value ~10% as soon as you drive it off the lot, and about 63% in the first 5 years of owning it. We recommend that you buy a car that’s at least 5 years old, as it will cost less up front, and will not depreciate in value as much as a brand new car.
- Save up to buy a car with cash – with an overall lower cost, you will effectively be putting a larger percent of the cost towards the down payment, resulting in lower monthly payments, allowing you to:
- Save more money toward appreciating assets – if you can’t afford to save at least the same amount as your car payment per month, you shouldn’t have that car payment – Saving money is great, especially if you are able to do so. With lower monthly car payments, that leaves you with more money to save per month.
Once you have found the best car for you, Al’s Auto Care will help you keep it running for years to come.
Find out more about the benefits we offer our customers here or call 1-(732)-477-9776 Today!