It’s almost the end of the year, and many Americans take this time to reflect on their lives and decide what the next year will bring. Often, this includes taking a look at the car they drive every day to see if something newer suits them better. The end of the year is actually one of the best times to buy a new car, and if you are wondering if now is the time to upgrade, we want to help.
Why You Should – or Shouldn’t – Buy a New Car
Even if you think you need a new car, you may not need a new car. Depending on your driving habits and budget, a reliable used vehicle can be a better option than a brand-new car. Let’s take a look at both scenarios.
Pros of Buying a New Car
One of the primary advantages of purchasing a new car is access to the latest features and technologies. Modern vehicles may be your only choice to get some of the features you are looking for, like automatic emergency braking and adaptive cruise control. On top of general safety advancements made in recent years, these features mean that many newer vehicles are rated much more highly than vintage cars regarding safety.
Another significant benefit is the warranty coverage that comes with new vehicles. Buying a used car will not give you the same type of comprehensive warranties to cover major repairs for several years after your purchase. Even without needing to use the warranty to make repairs, simply having it as a backup can provide many drivers with a more enjoyable, worry-free ownership experience.
And, for those with excellent credit, financing a new car may also be affordable. It will never be cheaper than an older car, but it can be a viable option if your budget allows. If you qualify, manufacturers and dealerships often provide low-interest financing options and special deals for new vehicles. Still, you should always ensure the terms and deals are favorable and something your family can burden in financial downswings.
Downsides of Buying a New Vehicle
On the downside, new cars depreciate quickly. The instant you drive off the lot and head home, your car’s value plummets, sometimes more than fifty percent. This rapid depreciation can be a drawback if you plan to sell or trade in the vehicle within a few years. If retaining value is important to you, a new car bought at a high sticker price is not the way to go.
Though this might be obvious, it’s important to note that new cars usually come with a higher upfront cost than pre-owned vehicles. The latest models, while packed with features, are more expensive and have a larger impact on monthly budgets. This higher cost may not justify the benefits if you’re looking for basic transportation or a vehicle to use for a shorter period.
Timing Your New Car Purchase
If you need a car now, you may be unable to wait for the best time to buy. However, if this decision is one you can sit on for a while, one of the best times to purchase is at the end of the calendar year, particularly in December. During this period, dealerships are eager to clear out inventory to make room for next year’s models, which often leads to substantial discounts on current-year vehicles. Additionally, the end of a month or quarter can be beneficial as sales teams aim to meet quotas, meaning more flexibility on price negotiations and additional incentives.
Tax season is another favorable time for car shopping. Many buyers receive tax refunds during this period, and dealerships often capitalize on this by offering special deals. However, make sure these are genuine deals and not simply marketing ploys to get more potential buyers in the door. There are many online services you can use to buy car models and receive an accurate, fair quote for their market value.
A new car is nothing without proper protection. Compared to an old junker, a new car will have a higher value, more advanced features, and unique coverage needs concerning newer materials and concerns. If you want to protect this investment and stay within the bounds of Florida law, you need comprehensive insurance.
As you finalize your car purchase, review your insurance policy to see if it meets your new vehicle’s needs. If it doesn’t, or if you need assistance when making an insurance choice, contact the experts at Anderson and Associates Insurance Group today. Insurance can be complicated, but our team can find the best rates for whatever level of coverage you need to protect your new purchase.
