Buying A Car? Choose New vs. Used
Looking to buy a car? Would you believe that in today’s economy, it may be better to purchase a new car than a pre-owned one? Lemon Law Attorney Craig Thor Kimmel discussed the pros of buying a new car with Michelle Buckman of Fox 29 News today. The interview, which was taped at the Philadelphia Auto Show, airs tonight during the 5pm newscast.
So, what are the selling points, when it comes to buying a new car?
First, there’s the warranty. Many folks who are calling 1-800 LEMON LAW regarding their used cars have aftermarket warranties which are worth less than the paper they are written on. The cost of repairing a car, when you include both labor and parts, could be skyrocketing and if you don’t have a manufacturers warranty, you could be stuck with a huge bill. A new car means you are ensured a manufacturers warranty and that your repairs will be covered by skilled technicians using manufacturer-approved parts. Thus, the manufacturer is responsible for the quality of the repair.
Also, in many states, including Pennsylvania, only new cars are covered under Lemon Law. (There are Federal Laws to assist consumers who have pre-owned cars with manufacturers warranties but the maximum remedies are not the same.)
Second, there are amazing financing deals available for folks with good credit. The dealers need to get rid of these cars, and now that they have 2008 leftovers and 2009 models, the inventory is larger than ever. Those with good credit scores are now in the “drivers seat” when it comes to getting a great deal on a great car.
Third is technology. Visiting the car show today, we were thrilled with all the new safety features available to consumers. Plus, more and more manufacturers are really thinking about fuel economy and how to save their drivers money each week at the pump.
Fourth, there may be an added incentive from Uncle Sam. Hybrid drivers are now looking at tax deductions ranging from $1,000-3,000, plus there is a bill being introduced which could provide any new car buyer an average of a $1,300 deduction on a $25,000 car. The government is looking at ways to convince consumers to purchase these cars, so that our manufacturers can rebuild their companies and their profits.
If you have questions about car buying, drop us a note and we’ll be happy to help any way we can. In the meantime, if you are in the Philadelphia area, we urge you to check out the Philadelphia Auto Show, opening tomorrow and running through February 8th at the Pennsylvania Convention Center. It’s the ideal setting to view all different makes and models without being attacked by salespeople. Happy Shopping!
April 21st, 2009 at 12:30 pm
Depreciation should always be factored into the equation. Consumers planning to keep a car for fewer than five years will likely get a better value buying a used car from a recent model year, which already has that initial depreciation built into the price. But if you plan on hanging onto the car for at least five years, it’s alright to go for that temptingly priced new car. The price of a car that’s more than five model years old is largely determined by its condition, rather than the initial selling price.