A New Car Or A Used Car?
In the world of cars, the realms of new cars and used cars have long been separated by a huge abyss. One side rarely has much to do with the other. Manufacturers worry about the new cars, mechanics about the used ones.
In the eyes of the new car buyer, buying a used car means taking on someone else’s bad driving and maintenance habits-not to mention any problems the car itself may have. To used car advocates, new car aficionados are incredible spendthrifts and energy-wasters.
In reality, new car buyers realize well enough that they would be stuck with their old car if there were no one around to buy used ones. Used car shoppers every day recognize the need for new car buyers to replenish the used car market.
Many people get a new car every model year. The majority of these cars will be traded-in, sold, or handed-down in three to five years. Only a small number of new car buyers keep their cars longer than that. When they do, they tend to ‘drive the car into the ground’.
There exists a variety of reasons why new automobiles or trucks hold so much appeal: A new car promises at least two years of virtually trouble-free driving, requiring no more than oil changes and other little bits of routine maintenance; New vehicles are sold with comprehensive standard warranties, covering major mechanical and body components for up to seven years; New cars look nice. They ride smoothly. They don’t rattle or squeak;
Recent arrivals on dealers’ lots offer the latest in technology, including advanced braking systems, electronic controls, better fuel economy, cleaner-running engines, and sophisticated safety features; For many people, a new car is also a sign or component of a ‘lifestyle’. For these motorists, many of whom are not necessarily automobile enthusiasts, the car is an extension of material values and one’s standing on the socioeconomic ladder.
Fair enough, but are new cars a practical proposition? From a purely objective, financial perspective, no. Then again, the one million-plus people who are going to get keys to a new conveyance over the next twelve months have more to consider than the simple bottom-line.
For example, a new car is the norm in business. Corporate cars for fleets, for executives, and other business and customer-related uses, must by necessity be reliable – which always translates into buying or leasing something new. In a business setting, the financial disadvantages of depreciation are added to the company’s regular operating expenses. It would be inconceivable for an organization like a major car rental firm to put old cars out for hire, just as a real estate salesperson cannot drive clients around in a less than immaculate automobile.
It is the average car owner – the person driving an average of 20,000 km per year to work – who makes an impractical financial decision when buying new. A new car purchase cannot be justified through rationalizations of financial practicality by an individual who does not, by definition of his or her driving needs, need a new car.
