By Giovana Pedrassani
Published April 7, 2022 in The Burg
Unfortunately the price of new cars has gone up. This is due to the microchip shortages that started when the pandemic took over.
New cars lose 10 percent of its value as soon as you drive it off the lot and can no longer be considered a “new car."
Most vehicles in order to have all the features of the newest technological advancement carry a microchip, but there are not enough microchips being produced compared to the number of people who are buying cars. Thus, the price of cars began to go up.
One reason to purchase a new car is because of the obvious benefits like getting to customize it, making it your own, and getting the latest in technological advancements which makes new cars safer to drive. For example, cars of this year almost all have blind spot radars, lane assist, automatic brakes, etc… New vehicles also mostly come with bumper to bumper warranty.
There are benefits to used cars, for starters, the price depreciates a lot slower. New car costs go down by about 20 percent in the first year. Another point that was given by Matt Hendricks of City Select Motors was “you might have a better chance of getting approved for a lower-cost used car loan, especially if you’re able to put down a large down payment”.
The price of new cars has gone up and are harder for salespeople to get out to the lot, while doing an interview with Jesse Perez, a car salesman at Yemm he explained “new cars are very limited because we are still waiting for the chips from the manufacturers so we can get the chip”.
Overall there are positives and negatives to buying a used and a new car. It really can come down to what is best for you. For people that need to have flexible monthly payments then a used car might be best. If you have a bit more money to spend, want to be able to get the car how you want it, and with all the best features, a new car is best and these days with the inflation of cars it makes more sense to buy a new car now because the pricing will not be as different.