Should I Buy a New Car in 2023? Pros & Cons

Should I Buy a New Car in 2023? Pros & Cons

Posted on March 2, 2023

In this article, we will be discussing whether or not you should buy a new car. As they are a significant investment that can involve up to 5 years of auto loan payments in Hamilton, we want you to make the right decision!

The same as when buying a used car, there are definite pros and cons to buying new.

Pros to Buying a New Car

There are some significant plus points to buying new. They include:

Low interest rates – Whether you’re using dealer or manufacturer finance or a Hamilton auto loan, you will usually find lower rates when buying new. Some of that will be down to incentives while some will be down to more predictable car values.

Vehicle warranty – You get a limited warranty with a used car but buy new and you get much more. Some cars come with 3 years or mileage warranties or even longer. Some of that warranty will include everything in the car while the longer part of the warranty will cover engine and drivetrain.

New technology – If you like the idea of heads-up display, cameras that see around corners, self parking, Apple Car Play or Android Auto, you’re going to need to buy new.

Safety features – The latest safety features will also be available in new cars. While they will be available once that new car has been used, you could have quite a wait.

Incentives – Some manufacturers offer to pay the deposit while others offer a contribution towards it. Governments offer incentives for EVs and some dealerships have their own incentive programs. All of which are only available on new cars.

Cons to Buying a New Car

There are some downsides to buying new though:

Depreciation – A new car can depreciate between 10-30% the moment you drive it home. Once your Hamilton auto loan is paid off, the car could be worth 40-50% of what you paid for it. This will of course, differ by make and model but all cars depreciate quickly when new.

Depreciating asset – Many financial experts counsel against buying a depreciating asset. We don’t have much choice when it comes to cars unless you lease but they may still look at you sideways when you drive up in your brand new car.

Higher initial cost – There is no doubt that you pay a premium to buy new. Especially when you can buy a similar car a couple of years old for much less.

It may seem like we’re trying to talk you out of buying a new car. We’re not. We just want you to buy the car that’s right for you and your financial situation.

When you’re ready to make your purchase, visit us and we’ll help find you a car whether it’s new or used!

If you're ready for a car loan, we'd love to help with that! simply fill in the form below to get started.