4 Disadvantages Of Purchasing A New Car

If you are ready to buy your first vehicle, you will definitely consider purchasing a new car. It might seem like the best option to you but, having a look at some of the cons of investing on a new car might change your mind. Of course a new car will be trouble free and have all the modern fixtures. But, they should not be your only concerns. Outlined below are 4 disadvantages of buying a brand new car.

High Upfront Price

Purchasing a new car is very expensive due to its high price at sale. A new car can cost thousands of dollars even if you get a partial refund or discounts. If you wish to obtain a loan service to buy the car, make sure to examine its terms and conditions. Usually the interest rate for a brand new vehicle is quite high and it is important to be certain that you can settle the loan payment every month without a hassle.

Fast Depreciation

From the moment you drive out your brand new car from the dealership, its value will start to rapidly depreciate. It will continue to depreciate over time and you are likely to incur large depreciation costs. If you look at buy second hand car Hong Kong, you will notice that the price of the car has dropped massively. If you are hoping to use a brand new car for a long period, it would not be much of a loss. But, if you want to resell it in a few years, keep in mind that the resale value will be very low.

High Insurance Fee

When a car is new its insurance premium will be very high. In addition, taxes and registration fee can also add up to a big amount. When you consider the rapid depreciation and the addition of high insurance, tax and registration fee to the initial price of the vehicle, it is much better to buy a second hand car. Insurance rates are usually affected by the age of a vehicle. Therefore, the older the car is, the less expensive it will be. Go to this page for further information regarding second hand car.

Inconvenience during the Purchase

Most dealerships will ignore and provide you less information about a new vehicle if they realize that you are only looking. Also if salesmen think that you are leaving for another dealership, it is likely that they will keep negotiating with you and keep you in the showroom for a long time. You will be passed onto several managers in order to close the deal.

If you have read through these disadvantages of buying a new car, it gives you all the more reason to buy a used. Although there are many positives of buying an unused vehicle, you might as well be aware of its negatives.