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3: Analyze Your Circumstances

Pros and Cons of Buying New

Scales of justiceIf you buy a new car, you are the owner — after you pay off the car loan. Here are some of the advantages and disadvantages of this choice:

  • Once you own the car, you can sell it.
  • You can’t be charged for exceeding mileage limits.
  • As the sole owner, you know the car’s performance and maintenance history from the start.
  • If you are financing the purchase, chances are interest rates will be lower than for a used model.
  • Most likely the car will come with a manufacturer’s warranty to cover any problems that may occur in the first few years. 

SAM tips

Once your car is paid for, save your monthly payment amount for yourself. It’s a good way to start the down payment for your next car purchase or to build up emergency car funds.  

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