Buying a brand new car: The pros and the cons no one tells you about
There are a lot of reasons why you would want to have a brand new car. A sparkling new car is always a dream for a lot of Filipinos. As consumers, not only are you not sure about a used car’s overall state, it is also a possibility that you are paying more than you should. For these reasons, people go directly to the car dealers and get their brand new car.
Is a brand new car always a good option? Of course, there will be pros and there will be cons. For those first-time car buyers, it is imperative that they weigh their options well. Is it a good or a bad deal?
Pros
Warranty
Warranty is among the main reasons why consumers want to buy a brand new car. This means that it will function well, without you spending unexpected costs. Since it is coming fresh from the car dealership, you could easily call the company if something goes wrong.
Car insurance
Buying a brand new car, you will find window shopping for a car insurance company a smooth experience. Unlike older cars, there will come a time when car insurance firms are no longer willing to cover the car.
Latest in technology
If you will look at the modern design and the newest technologies applied to the brand new cars, it is possible that passengers and drivers are going to feel safer. With improved technologies meant for both safety and efficiency, this makes a huge difference in the driving experience, compared to the older cars.
Cons
Price
The price of the brand new cars could reach millions of pesos. Unfortunately, not everyone is going to have enough money for this kind of purchase. If you ever purchase a car with this price tag, it is possible that you are making a bad financial decision, unless you have a lot of savings.
Depreciation
One of the biggest downsides of having a brand new car in the Philippines is that you have to deal with a high depreciation rate. During the first few years of your brand new vehicle, expect it to drop significantly in value. You can’t expect a car to be sold higher than its original price.
Lack of feedback
One of the risks that you will have to watch out for is that there are some issues that may appear in your car. With brand new cars, you can expect the lack of available feedback out there. Though the car is brand new, you may never know when will there be a recall on a particular car model.
If you are going to buy a brand new car, you should always make sure that you consider these things. A car in the Philippines is a long term investment. Should you decide to stick with a brand new car, you have to be prepared financially. Next, you should also be willing to take the losses in terms of annual depreciation. And of course, you have to consider the risk that there could be issues waiting to be discovered on this particular vehicle that could have it recalled.
