Yesterday I pointed out several reasons to consider buying a used car instead of a new one. For many Fools, used cars are a tremendous value purchase. But there certainly are benefits to buying new, benefits that go well beyond that intoxicating stew of volatile organic compounds.
So what do you get for that 30% premium you pay for buying a new car instead of a two- or three-year-old used one?
A longer, more comprehensive warranty.
Of course, that discount special parked in front of Joe's Bait and Easy-Pay Used Cars doesn't have any warranty at all. But the best used cars -- the lightly used former lease cars sold by new car dealers under factory "certification" programs -- do come with warranties. While "certified" cars can offer good value, certification-program warranties are never as good as that manufacturer's new-car warranty. Some new car warranties even cover oil changes and the like, for three or four years, or as many as 50,000 miles.
The latest safety, convenience, and environmental features.
This one speaks for itself. If you want the best airbags and electronic stability systems and super-deluxe seat warmer doodads -- and the cleanest engines -- you've got to buy new.
A car that lasts longer.
Beyond the obvious -- a new car should have two to three years' more life in it than a two- or three-year-old one -- there's an additional advantage to buying new. Are you a stickler for maintenance? If you are, your car will last longer and deliver more value. But unless you've got access to a used car's full service history, you don't know whether its first owner changed the oil once every 3,000 miles, or once a year. Careless maintenance early in a car's life can have long-term effects that might not show up until much later.
Better financing terms.
Unless you're planning on paying cash for that new ride, financing costs will be a sizeable chunk of what you pay to own your car over the first few years. Buying new entitles you to low-cost factory financing and (often) special deals, which can represent a sizeable savings over a bank loan. And even if you do finance through your bank, you'll often pay more on a used car loan. Rates on used car loans from major banks such as Bank of America (NYSE: BAC) and Wells Fargo (NYSE: WFC) are often a full percentage point higher -- or more -- than their new car loan rates.
Source:
http://www.msnbc.msn.com/id/19224991/ | 
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