5 Frugal Reasons Why You Should Never Buy a New Car
As MotorBiscuit writers, it’s our job to inform you about the latest news and information about everything automotive, so you can make a wise decision if you’re looking to buy a car. That not only means providing you with information on every car we can, but also providing you with car buying information – even if it means a reality check. As such, if you’re looking to buy a new car but are on the fence, here are five reasons you should probably save your money.
1. If you can’t afford a new car
The first point is pretty simple: If you can’t comfortably afford a new car, then don’t buy one. That doesn’t only mean that if you can’t afford a $50,000 Mercedes-Benz, don’t buy one. It also means that if you can’t afford an $18,000 Kia Rio and its $200 monthly payments, you shouldn’t buy one.
Be honest with yourself and your budget, and ensure that you can comfortably afford a new car before stepping into a dealership showroom.
2. If you’re underwater on your current car
If you are currently “underwater” your car, which means you owe more money on its loan than the car’s worth, don’t buy a new one. Sure, you can easily roll over the amount that you currently have onto a new car, but that will make you even more in debt and more underwater on the new car.
MarketWatch reports that if you’re underwater on your car, you can make extra payments on the loan, refinance it, or just continue to make payments so the amount owed catches up with the value.
3. Don’t buy a new one if you don’t need one
When buying a new car, ask yourself first if you need one. You can do so by considering the following:
- Is your current car in good shape?
- Do you only drive short distances every day?
- Is your current car paid off?
If you answered “yes” to these questions, you likely don’t need a new car. We know it’s fun to drive something new, but if your current car works just fine, there’s no need to spend the money.
4. The car gets poor fuel economy
Does that new car you’re checking out get an average of 15 mpg? If so, take that into consideration because that poor fuel economy will eventually eat into your wallet quicker than you can say “gas mileage.” It would be wise to calculate how much it would cost to fuel the new car monthly and decide whether it’s worth buying.
5. You feel hesitant when thinking about buying a new car
If you feel hesitant at the thought of buying a new car, whether it be due to cost or the act of buying, you should probably hold off. There’s usually a good reason why you’re hesitant, so be sure to look over your budget and weigh the pros and cons before pulling the trigger.
Reasons to not buy a new car
A new car is the second biggest purchase you’ll ever make, so it’s not an easy decision. Before buying a car, check these five points first to see if you are truly ready. If so, then check out these five tips for buying a new car the smart way.