Should I Buy a New Car?

Each solution to car-buying has its pros and cons.

Christian Wardlaw | 

Aug 5, 2021 | 3 min read

Capital One

Now that you have a better idea of what kind of vehicle might be right for you, let’s examine the pros and cons of purchasing a new vehicle.

Advantages of buying new:

• As close to perfect as a vehicle gets in terms of condition
• New-car warranty, plus many automakers include free roadside assistance, connected services, and maintenance programs for a limited time
• Wide variety in terms of color, interior materials, and features
• Generally lower loan financing rates
• Equipped with the latest safety and technology
• No repair bills during the warranty period, and in some cases, no maintenance bills for the first couple of years

Disadvantages of buying new:

• Can be costly; you’ll rarely pay more for a vehicle than when it is new
• Steep depreciation during the first several years of ownership
• Potentially higher cost to insure and register

Buying a new car is the right solution when paying top-dollar for maximum peace-of-mind is your goal. To be perfectly clear, this is the most expensive way to buy a vehicle. The thousands more you’ll spend to get a new car compared to other options is money that is instantly lost. The moment you drive a new vehicle away from a dealership, it becomes a used vehicle and is typically worth significantly less than you paid for it just moments beforehand. Within five years, it is worth a fraction of its original sticker price.

But spending extra money in this manner is not without clear benefits.

For example, all new cars are essentially in identical condition and ready to provide years of service while requiring little more than regular maintenance and upkeep. And if something does break, the original factory warranty generally protects you from big repair bills. Some automakers provide more generous warranties than others, so be sure to do your research. You could get up to 10 years and 100,000 miles of powertrain protection at no extra cost.

Deciding to buy a new car also gives you a wealth of choice. You can order the exact vehicle you want from the factory or select from dealership inventory that provides multiple exterior paint, interior color, and equipment combinations. In turn, this makes it more likely you’ll be happy with the purchase over time.

New vehicles also include the latest safety engineering, driver assistance systems, and infotainment technologies. From structural design that absorbs and deflects energy during a collision, to automated features that can help prevent a collision in the first place, new vehicles are safe choices. Wireless smartphone charging, Apple CarPlay, Android Auto smartphone integration, and connected service plans with Wi-Fi are now common in new vehicles but may still be unavailable in older cars.

Auto manufacturers frequently offer generous consumer rebates, big dealer incentives, and low interest-rate financing on new vehicles to help reduce the overall cost to the consumer. However, new vehicles are more expensive to insure and, in some states, register with the Department of Motor Vehicles (DMV). These added ownership costs can negate any purchase discounts and interest-rate savings.

If you’re willing to pay extra for the personalization, longevity, and latest technology and safety features a new purchase can offer, this might be your ideal route.

Christian Wardlaw

Chris says his first word was "car." For as long as he can remember, he's been obsessed with them. The design. The engineering. The performance. And the purpose. He is a car enthusiast who loves to drive, but is most passionate about the cars, trucks, and SUVs that people actually buy. He began his career as the editor-in-chief of Edmunds.com in the 1990s, and for more than 30 years has created automotive content for CarGurus, J.D. Power, Kelley Blue Book, the New York Daily News, and others. Chris owns Speedy Daddy Media, has been contributing to Capital One Auto Navigator since 2019, and lives in California with his wife, kids, dog, and 2004 Mazdaspeed Miata.