In my last blog post, I wrote 5 good reasons why you should buy a new car versus a used car. But behind all the pros, there are also some cons as well.
In this post, I thought of writing a short post on 3 disadvantages of buying a new car.
1) Higher deposit required.
To purchase a new car, a person will obviously require a higher deposit or a larger loan. Interest on the car will definitely be higher, thus making the vehicle purchased costlier in the long run.
2) New car more likely being stolen.
New cars are more susceptible to being stolen as compared to second hand vehicles. An owner will then have to insure it for a higher sum of insurance. In the end, owners of new vehicles will have to bear higher financial costs.
3) Higher and faster depreciation.
Besides possessing a higher resale value, a new car also experiences a “depreciation” drop which can amount to anything from 25 – 30 percent initially. Compared to second cars, new cars which suffer from depreciation drop is normally borne by the first owner.
Should you now buy a new or second hand car? After considering all the advantages and disadvantages, you can now make your decision.