A new car is often considered a ridiculous investment. Due to long-term loans and steep depreciation, most people buy used. However, buying a car today isn’t the same as it was ten years ago.

These 3 reasons explain why investing in a new car could be one of the best decisions you could make.

Low Interest Rates

If you haven’t borrowed a lot of money in the past and don’t have any high-interest loans to pay back, spending your money on an auto loan is certainly not a bad idea. New cars currently have fairly low interest rates at an average rate of 2.98% for a 60 month period.

According to Fortune, most car loans are calculated using simple interest method, which means that the interest paid each month is determined by the remaining balance; therefore, the earlier the loan is paid off the less it will cost.

It’s no secret that buying a new car is a significant long-term investment, so ensuring you get the best possible deal is crucial. You never know when the tides could turn and make interest rates skyrocket, and they certainly aren’t going to get any lower any time soon. 2014 is definitely a logical starting point.

Longer Lifespan

Buying a used car often seems like the more logical choice when taking prices into account; however, if you look at the overall picture, they’re not significantly cheaper – maintenance is more expensive, the lifespan is shorter and the fuel efficiency may not be up to the latest standards.

Depreciation is always an issue, but not if you want a car that will withstand the test of time. A few years ago when a car’s mileage reached 6 figures it was deemed old, frail and destined to fail. Nowadays when a car reaches 100,000 miles, it’s merely halfway through its lifetime.

Investing in a new car may not have been logical a few years ago, but when comparing the investment to the lifespan between a new and old car in 2014, buying a new car seems more financially viable.

Multimedia Advancements

Since the evolution of smart phones and tablets there has been little need for car multimedia systems. When GPS systems were first brought onto the market people were amazed, yet they were a luxury that few could afford. Nowadays it would be unusual if you didn’t have some kind of navigational tool. With the extremely fast rate of evolution in the tech sector, many car multimedia system manufacturers fell behind in the race; however, as of 2014 they are starting to make a comeback.

Since the start of the year a number of new multimedia systems have hit the market that are using software that provide interconnectivity with smart phones and tablets. Instead of competing with the industry they are working together to develop new technologies.

The Kenwood DNX521DAB is a device that’s been turning heads all over Europe. While there were previous versions of the same model, none of them had the features and visual quality that’s expected from the tech world. This device is built specifically for Volkswagan, Skoda and SEAT vehicles and features everything from hands-free calling to full voice control, allowing you to input directions, change audio track, write texts and make calls, all without moving a muscle.

Buying a new car may not be for everyone; it really depends on your personal circumstances and financial situation; however, don’t shun the idea just because it’s generally frowned upon. Weigh up the facts and figures yourself to determine whether or not it’s truly worth it. You may be surprised by the final result.

Image Credit: The Green Guide

new_carBuying a car today isn’t the same as it was ten years ago.