5 Reasons to Buy a New Car

In a previous column, we 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 new-car smell.

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?

edmunds.com and Consumer Reports, and to learn the average selling price of your desired beastie. The price you end up paying will vary from there, depending on your negotiation skills and local supply and demand, but it won't vary the way used-car prices do.

One last note: All of the above points assume that you're planning to own the car for a long time, until it's old and tired. If you're the sort who likes to trade every two or three years, I urge you to consider used-car options carefully. You take a financial hit every time you trade in a car, and that hit gets bigger if you have to eat new-car depreciation every time around. Whatever you decide, add up the total costs before you buy, and make sure that your new purchase won't get in the way of your long-term.

Copyright © 2008 Universal Press Syndicate financial goals.