When It Makes Sense To Buy New

There are a lot of things you can do instead of spending five figures on a new ride. Travel the world. Pay off debt. Get a house. Heck, you can even pursue that elusive shangri-la known as retirement. Or have lunch at Waffle House for three years straight so that you can completely avoid that ‘growing old’ business.

A new car is a big chunk of an expense for a lot of folks. But sometimes it’s worth it.

The ‘Keeper’: Are you the type of person who likes to keep things until they completely wear out? Do you hate risk, change, or dare I say it… cars?

A lot of car buyers simply want a long-term transportation tool that works well and nothing more. They follow the maintenance schedule. Go about their business, and couldn’t give a flip about what amounts to a once-in-a-generation expense.

The ‘Bourgeois’: They have the money… in cash. It may be other people’s money. Or yours for that matter. But they still have the means to enjoy the finer things in life.

For them having a nice ride on their driveway is part of the benefits of their ‘Yuppie union card’. It’s what they aspired to have through years of hard work. Or marriage. Or an inheritance.

So if freedom and happiness equate to an automotive status symbol, then you have lots of options out there. None are cheap… but plenty of them are fashionable.

The ‘Fear’ buyer: Grandma knows she’s getting old. But who wants to give up their mobility?

Hmm. That new car over there. It’s got a backup camera. Blind-spot detection. Emergency brake assist. 10 airbags. Adaptive headlights, and a roll-over protection system.

Her current ride? It has twenty-seven dents and a broken car horn.

It’s not only Grandma on this boat. Feel free to consider those who have a ‘growing family’. Or the parent offering financial help to a single mom. Or a new driver who has two left feet.

Truth be told safety is one of the biggest reasons why consumers buy new cars.

The ‘Enthusiast’: Homer J Simpson loves his Canyonero SUV. It has oversized wheels. A winch strong enough to tow the neighborhood ice cream truck against it’s will, and triple sealed windows so that Homer doesn’t have to hear the curdling screams of nearby commuters while he plows through traffic.

But it doesn’t have a built-in ‘texting’ keyboard on the steering wheel. Or a voice activated phone that lets him reserve his bar stool at Moe’s tavern.

Nope. His corporate arch-nemesis Krusty has all those things in that brand new 2012 Canyonero.

Does Homer spend a couple grand to retrofit his Canyonero? Or take a $25,000 hit on his ride. Why he takes the hit of course… and charges it to his clients.

The ‘Tightwad’: Tightwads buy NEW cars? Yep. A few of of them do. Let me give you an example.

Terry bought a brand new Volvo 240 wagon way back in 1987. He maintained it all himself with a factory manual. Bought his tires and auto supplies on sale or on Black Friday. In time Terry also joined the ‘Brickboard’ and other Volvo forums so that he could always tend to unexpected maintenance and repair issues.

Yep, I know Terry. No, he’s not a blood relative.

Ten years after buying the Volvo, Terry goes to a neighboring auto auction and buys himself a used, but well kept Volvo 240 sedan for $2500. He now has the means to maintain both his vehicles using the same tools and supplies.

Terry also has three kids who become drivers as well. All of whom end up getting… guess what? That’s right. A Volvo 240. Hey it keeps the insurance cheap and the newbie’s slow.

It isn’t until late this year that Terry and his wife became empty nesters and finally bought their new ‘retirement car’. Another 240? Nope. They’re long gone. Terry buys a Volvo 940 wagon from yours truly for $1500… and his wife gets a 2012 Mazda MX-5 for $25,000.

Has Terry missed out? Not at all. Sometimes you have to ‘buy the new’ to enjoy the old.