Buying your first new car is often seen as a coming-of-age ritual and a way to assert a certain status.
This is why many French people decide to buy a car fresh out of the factory… without really thinking twice.
Yet the facts are clear: for some, buying a new car could be one of the worst financial decisions .
Between the price, the loss of value and the associated costs, find out how and why this purchase could impact your finances for many years.
The new car: want or need?
Today, the car is no longer considered only as a vehicle that is used to move us from home to work. Over the years, it has become a representation of social status.
For many, there is something exciting about owning a nice new car. We are often congratulated on our new purchase. The car is a symbol of luxury and a comfortable lifestyle.
Many young adults, once their purchasing power increases, therefore prefer to turn to new cars. The reason ? “They can (technically) afford it.”
The purchase of your first new car is still today a sign of autonomy and freedom as much as it is for many a reflection of financial independence.
Yet this is the whole problem of the trade in new cars: we buy a symbol, an image which will then often cost us much more in the long term.
Much more than a necessity or a thoughtful purchase, it is an emotional purchase . The car is a way to “enjoy yourself”, and not as an important financial decision.
Apart from the justified passion that some may have for the automotive field, it is just a question of becoming aware of the impact of this purchase. If you think about the reaction of your friends or family when you imagine buying your new car, you are probably on the wrong track.
Are you really willing to pay several thousand dollars more for a used car just to maintain a volatile social image? Going into debt and having to pay additional interest every month?
Because one thing is certain: the decision to buy your new or used car will have a big impact on your finances for years to come.
Buying a new car: what are the advantages?
It is undeniable that buying a new car can offer a certain comfort and many benefits: manufacturer’s warranty, cleanliness, the feeling of having less chance of breaking down…
You have understood: the long-term financial choice is detrimental. However, buying a brand new car still has advantages that should be noted:
The manufacturer’s warranty is certainly the biggest advantage in favor of buying a new vehicle. A “security” guarantee in the event of a problem that reassures many new buyers. Who would want to have to pay for repairs again right after such a large expense?
New cars often have the latest technologies and innovations on board . Mobile technologies, such as CarPlay or Android Auto, are advantages in terms of driving comfort.
New cars may be more economical or environmentally friendly. New less polluting technologies or the development of electric cars, for example, can ensure more ” eco-friendly ” driving (this argument does not, however, take into account the environmental impact of the manufacture of new cars and the “premature” replacement of your current
Regardless of the discounts or commercial gestures, it is always more expensive to buy a new vehicle than a second-hand one. Worse still: “attractive” consumer loans which may suggest that this purchase on credit would be more profitable.
Unlike a used car, the price of a new car will often be very variable , and easily negotiable with your dealer. If this is often presented as an advantage in favor of buying a new car, it does not compensate for the rest of the disadvantages and is in no way a financial advantage compared to the used car.
In addition, if the price of the model you are looking for has too often been sold off at the dealership in order to sell off stocks, this will then have a strong impact on the resale price. Excessive reductions on certain vehicles generally lead to a drop in its market value.