Financial Advice

Buy & Own a Car


Eight Reasons to Buy a New Car

You’ve probably heard about how new cars start depreciating the minute you drive them off the lot. And it’s true that most new cars can lose much of their value in the months and years after purchase. However, final purchase price is just one factor of many to consider when buying a car. Depreciation aside, there are several great reasons to consider buying a new car instead of a used car. Here are eight of them:

  1. Reliability — Simply put, everyone who buys a car wants to get from point A to point B without fail, so reliability is one of the most important factors to consider when buying a car. In general, new cars have fewer breakdowns and require fewer repairs than used cars.

  2. Warranties — New car warranties are better across the board, with three-year warranties being standard. Used cars usually do not come with a warranty. If they do, they’re probably limited.

  3. Less Maintenance — Usually, the older cars get, the more expensive the repairs they require. Buying a new car means your primary upkeep should be routine maintenance and oil changes for the next few years.
  4. Call (512) 498-CARS (2277) to learn more about auto loans, or apply online.

  5. Safety — Automotive engineers are constantly improving driver and passenger safety, and almost every model year brings new safety improvements to the market.

  6. Latest Technology — From Bluetooth to touchscreens to satellite radio, new cars will have the same technology features you’ve become accustomed to using outside of the car.

  7. Better Fuel Efficiency — Having a car that goes longer on less fuel is better for the environment and for your wallet at the gas pump. Not having modern fuel efficiency could cost you more in gas over the course of your car ownership.

  8. Dealer Incentives — Auto manufacturers and dealerships offer incentives to buy new cars that can save you considerable money off the final purchase price. These incentives can be cash-back, zero money down offers, or 0% interest rates. Incentives are offered at certain times of the year or can be based on personal circumstances, such as being a recent grad or in the military.

  9. Better Interest Rates — Auto loan rates for new cars are generally lower than rates for used cars. This is because car manufacturers often subsidize loans on new vehicles, and there is more variability and risk in lending money for used cars.

Whether shopping for new or used vehicles, University Federal Credit Union offers low rates on auto loans and can help you every step of the way on your next car purchase. Still not convinced? Buying new is not for everyone, and there are also advantages to buying used. Before you decide, read Seven Reasons to Buy a Used Car.