Chad Staples operates out of Elevation Dealer Services as an inside expert. His finance and insurance agency helps more than 1,000 dealerships across the country get and stay profitable. This month, he warns not his industry clients, but new car buyers about a concept he’s realized over time. His point comes from a very personal experience: In 2022, Staples bought a brand-new GMC Yukon Denali. Suddenly, the engine failed in late 2024. It’s sitting been in a shop for more than 45 days…with the replacement engine on backorder.

You can’t assume that just because a car is new it’s not going to be problematic

“New cars often come with more issues than many people realize,” he writes in the post caption.

Recalls, premature failures, and manufacturing challenges are all part of churning out the most modern automobiles…especially ones that introduce brand-new tech. Still, though, even reputable automakers run into manufacturing defects.

Case in point: Recently, Toyota discovered that some 100,000 2022 and 2023 Tundra and Lexus SUV engines might not have been properly cleaned during production. Leftover debris could cause sudden, premature, and catastrophic engine failure.

“Just because it’s new, it doesn’t mean it’s going to be trustworthy,” Staples says.

Protect yourself by building unexpected failures into your ownership budget

Staples recommends new car buyers factor in more than just their interest rate, monthly car loan payment, insurance, and fuel costs. They should also consider the overall costs of ownership. Since I worked the front counter at a shop for a decade, I have an idea of what these expenses entail.

This includes expected maintenance (fluid services, brakes, belts, etc.), unexpected repairs (leaks and component failures), and the costs associated with having your car at a garage for some time while it’s getting fixed. You might want to budget rental car expenses, for instance.

If you have an extended aftermarket warranty, there are still deductibles, exclusions, and coverage limits. Be aware of these and budget for the chance that you’ll have to pay at least some portion out of pocket.

In my mind, there are yet more ways to protect yourself from a poor new car ownership experience. You might opt for a highly reputable make and double (or triple) check your budget before signing that new car loan agreement.