14
THAT NEW CAR SMELL
2019 ISSUE #3
That New Car Smell
SURE IS AN EXPENSIVE AIR FRESHENER.
Of course, there are other reasons to buy a new car. At the same time, it
makes plenty more “cents” to buy a used car.
1) SAVE MONEY
You will save thousands of dollars by
purchasing a used car. In fact, based
on the data cited below, you’ll spend
$3,000, $5,000, or $10,000 less by
choosing a slightly used car instead
of a new car. Why is this? New cars
depreciate, and fast. Sign the paperwork
for a brand-new car, drive it off the
lot, take a ride around town, and then
return the car to the dealership. It isn’t
a new car anymore. It is a used car.
And because it is a used car, it is worth
substantially less than you paid for it
just an hour prior. After three years,
Consumer Reports says your new car
will be worth just 54 percent of what you
paid for it, on average. Ouch. Beyond
the issue of depreciation, you’ll pay less
sales tax on a used car and insurance for
a used car costs less.
2) RELIABILITY
Today’s cars, trucks, SUVs, and vans
simply last longer. By the middle of
the summer of 2015, according to IHS
Automotive, the average car driving on
Canadian roads had reached a record
high of 11.5 years of age. The auto
industry think tank also predicts that by
2020, the number of 12-year-old vehicles
still in operation will rise by 15 percent.
Clearly, modern vehicles are built to last
longer than ever, which means you can
save thousands and expect a long service
life from a used car.
3) LEASING
Thanks to low payments, leasing is
increasingly popular with new car
“buyers.” Experian Automotive reported
that during the first part of 2015, more
than 30 percent of new vehicles were
leased rather than purchased. However,
people must take good care of the
vehicle or face expensive fines at the
end of the lease. When the lease term is
up, the car is returned, and the returned
vehicle must find a home. Typically, that
is on a used car dealer’s lot. Off-lease
vehicles are usually perfect, which
essentially guarantees a used car buyer
a vehicle in “like new” condition. These
cars have low mileage, they’re well
cared for, and all the maintenance is up
to date.