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RetireMax Insurance Blog

All You Ever Wanted to Know About Insurance

Buying a New Car!

Buying a new car

Things to keep in mind when buying a car

Buying a new car is an exciting time — but it can also be stressful. After all, you’re

trying to get the best deal on price, while also deciding on the make, model and features you need.

Here at RetireMax Insurance, we can’t really help you become a master negotiator when it comes to buying a

car. But we can give you some things to consider when you’re looking around the lot — and when you’re trying to answer the age-old question of “new, or used?”

Read on with an open mind, and you might just come to a different decision the next time you’re on the car lot.

New cars

Ah, that new-car smell. It’s a bit of a cliché, but it’s one of the things that

people love about climbing into a brand-new car. And while they make air

fresheners that supposedly give you that same smell for your used car, it just

doesn’t seem the same, does it? Still, there are other benefits to buying new —

and, of course, there are drawbacks as well.

PRO — maintenance: Some manufacturers offer free

scheduled maintenance for a set period of time after you buy the car, and you

likely won’t need a new battery, tires, etc., for several years after your


PRO — peace of mind: Your new car may have a

warranty for up to 10 years, and also is covered by “lemon laws” that could

allow for a replacement or refund if the car has serious defects.

CON — cost: Depending on the make and

model, buying a new car is almost always more expensive (at least in terms of

the purchase price) than a used car.

It’s also worth noting that if you purchase a new car in its first model year

(meaning it’s a new model for the automaker), there won’t be many user reviews

available, and data on reliability and repairs will be limited. In addition,

sometimes newly introduced cars have some kinks that generally are ironed out

by the second and third model years. These aren’t necessarily serious issues,

and the warranty should cover them, but in some instances, you and your car

could be headed to the shop more than you’d like.

Used cars

Don’t care about the new-car smell? Looking to save some money on your purchase?

Well, a used car might be right for you. There are many advantages to buying

used, but you’ll want to be a little more careful. After all, it’s hard to know

exactly how well the previous owner treated the car. But you can limit your

risk with a little bit of work.

PRO — cost: New cars depreciate quickly

after they’re purchased. By buying used, you’re letting someone else take that

financial hit over the first few years of the life of the car.

PRO/CON — reliability: Buying a used car is less of a

gamble than it used to be, particularly with the advent of “certified

pre-owned” programs many automakers now offer. However, used cars generally

don’t carry the same warranties as new cars, even though the original manufacturer’s

warranty is usually transferrable to a second owner.

CON — maintenance: While a used car theoretically

shouldn’t need more frequent maintenance than a new car, you’ll likely need to

replace things like tires, headlights, etc., earlier. And scheduled maintenance

probably isn’t covered by the automaker.

PRO/CON — history: You’ll need to check the car’s

title history to make sure it hasn’t been in a serious accident or salvaged.

Ask the dealership to provide this information, usually from


Of course, whichever car you purchase, the important thing is that it’s a good fit

for you. Bear in mind that certain makes and models can result in higher

insurance costs for you, so feel free to check in with us before you buy.

Have fun shopping — and we’ll see you on the road!

RetireMax Insurance

Joseph M. Francis, CISR


info [at] retiremaxinsurance [dot] com