When Does Buying a New Car Make Sense? A Guide for Families on the Fence

Is buying new or pre-owned a better option for your family? I’m here to help.

When it comes to buying a car, choosing between new and pre-owned can be challenging, especially with car prices at an all-time high and attractive new car financing deals. I'm not here to discourage you from buying a brand-new car; I just want to make sure you're considering the entire decision process. As my dad always says, "Kelly, they are pre-owned cars, not used!" and he's absolutely right.

As The Car Mom, I frequently drive new cars, specifically demo cars owned by dealerships, which are regularly switched out as they sell. It’s a great way for me to see what manufacturers are rolling out to share my thoughts from the family car perspective. That being said, my husband always buys pre-owned cars as his daily commuter so our family has had our share of both options.

Most importantly, I’ve sold both new and pre-owned cars for several years! Needless to say, I truly understand the decision process and see the pros and cons of this choice.

So, let’s dive in and break down exactly what the appeal is between new and pre-owned cars, and when buying new might be the best option for your next family car.

Why Are New Cars So Attractive?

New cars have a certain allure: the latest technology, the pristine condition, and that unmistakable new car smell. But, there are practical reasons why people gravitate towards them too. New cars often come with the latest safety features, better fuel efficiency, and the peace of mind that comes with a full manufacturer's warranty.

If you’re thinking about family car shopping, but aren’t sure what your true budget is, check out my Car Payment Estimator! This FREE tool will help you get a baseline for the total loan amount and monthly payment you need.

Is There Anything Wrong with Buying New?

Absolutely not! There are many valid reasons to choose a new car. However, the biggest hang-up people have is how fast a new car depreciates. 

As soon as you drive off the lot, its value drops significantly. This rapid depreciation means if you’re not planning to keep the car for very long and plan on financing, it’s unlikely you’ll be able to sell the car for more than what you owe on it. If you’re buying the car outright, this isn’t as much of an issue.

When Is A New Car “Worth It”?

Although there is a huge appeal to save money and get a great deal, there are a ton of benefits to shopping new for your next family car. If you're on the fence, here are seven scenarios that will help you decide which market you're in and whether buying a new car makes sense for your family:

Budget Isn't Your First Priority

If budget isn't your main concern, buying new is a great way to get exactly what you want in your family car. Budget is really the main factor that differentiates new from pre-owned. With new models, you get the latest features, trims, and even warranties. For some families, these options outweigh the higher price tag, especially if this car will be a hauler for the next decade. 

You're Planning to Keep the Car for a Minimum of 7-10 Years

If budget plays a role in your decision, I recommend buying a new car only if you plan on keeping it for 7-10 years. Viewing your new car as a long-term investment can be a smart move if you're committed to keeping it for at least that amount of time. 

It's important to note that you can absolutely keep a pre-owned car for 7-10 years as well, depending on its mileage and condition. With proper care and maintenance, a pre-owned vehicle can serve your family just as well as a new one!

As a reminder, all cars need maintenance - even new ones! It’s a bit of a fallacy that new cars require less maintenance if you plan on taking care of it well.

You're Very Selective About Color and Trim Combinations

Depending on what you want your car to look like aesthetically, the specific color and trim of your vehicle may be a high priority. Although you may get lucky when you’re shopping pre-owned, you can’t guarantee you’ll get exactly what you’re looking for.

You could find the right trim in the wrong color, the right trim but with captain’s chairs only - there is always going to be some give or take.

With a new car, you can shop the lot and/or head to the manufacturer’s website and design your ideal make and model. This is a fun exercise that I recommend doing as part of your car-shopping process. You need to see what features are available!

Don’t forget about bench seats! 

One of the main ways this comes into play is when looking for the second row bench seat. It never fails to amaze me how hard manufacturers make it to find these, but for many families fitting three car seats across is crucial. 

This is where the trim level can be really important. If this is a priority to you, read my post - Cars with Bench Seating in Highest Trim Levels. 

You Want a Manufacturer Warranty

I touched briefly on manufacturer warranties, but this is one of the main selling points in brand new cars. Peace of mind is a significant factor for many car buyers. New cars come with manufacturer warranties that cover repairs and maintenance for a specified period, typically ranging from three to five years. 

I hear a lot about people worried about a “lemon”, and while ALL cars (even brand new ones!) need maintenance, if you’re worried about extensive repairs, the manufacturer warranty will have you covered for a specific amount of time.

This warranty allows you to feel comfortable relying on your family car to get to drop off and pick up without worry because if something is wrong, you’re covered. 

You’re Looking For a Vehicle with Very Few Miles

Buying a new car means you start with a clean slate. New vehicles come with zero miles (or just a few from test drives), meaning you won't have to worry about previous wear and tear.  If you really want a car fresh out of the box, you can order it from the manufacturer website to a nearby dealership and watch them unwrap it for you.

This is appealing for families who view their car as not just a transition phase (think a minivan or in-between car), but a hauler meant to hold up for years to come. This is when miles become more important.

If you know me, you know I’m not hung up on how many miles a car has if it’s been maintained well. I wouldn’t buy new for this reason alone, but it’s a factor for sure.

I wrote about this in my post here - Is 100k Miles Too Many For A Car?

You're Interested in a Lower Interest Rate

This is one major place the new car market has the old one beat.

To entice families to come in and buy new over used, financing is one of the main tools at the dealership’s disposal. New cars almost always have better financing options thant pre-owned cars. It’s just the way it is!

On top of that, car manufacturers and dealerships frequently offer promotional financing rates that can make a new car more affordable over the life of the loan. This can mean lower monthly payments, even if the overall cost of the car is higher.

The Model You Want is Only Available New

Sometimes, your dream family car is only available as a new model. If you’re looking for the latest electric vehicle (I’m looking at you Kia EV9 and Rivian R1S), I highly doubt it will be available on the used market just yet. 

So… When Does Buying a New Car Make Sense?

New vs. used is always going to be a discussion in the family car market, but what I would recommend for families is if all your other needs outweigh price, the new car market is the better place to shop.

That’s not to say I don’t LOVE the used car market and think it’s an excellent option for a ton of families out there. This is where your budget will stretch more and provide a slightly-older model, but with a lot of life left to match what your family needs.

If you’re still unsure on which option is best for you, I highly recommend checking out my course: How To Save At The Dealership. I’ll walk you through exactly how to enter the dealership with confidence (regardless of if it’s a new or used car).

Do you generally shop in the used or new car market? Let me know in the comments! And to keep up with the latest on the blog, check out my recent posts: