A money myth I hear from so many when deciding on a new car purchase.
I have always wondered why people associate older cars with safety. For me, I associate the purchase of an older car with saving money on depreciation.
Why Car Marketing Schemes Are Amazing
I am very much amazed at how well car dealerships can sell people on the purchase of a brand new car. They are in a business of selling a dream, selling a lifestyle, selling something to make a profit. I mean aren’t all business’?
Think about it this way. Every year, car companies try to convince you that last years model is obsolete. They try to convince you this years new safety features are necessary for you to be safe while driving a car. Didn’t they convince you last year that you now are so much safer? I bet if there were studies (or have been studies) on car safety, there is no exponential increase in safety from this years model to last years. Maybe that is the frugal person in me saying that though.
You Don’t Need The Latest And Greatest
Don’t fall prey to these marketing schemes. Yes, they have continued becoming more intelligent in how they market. They are becoming more targeted to the type of individual who would drive their car. They are also becoming much more targeted in the sense of knowing who is looking to purchase a new car.
I can speak from experience in the field I work in, the intelligence we are getting from data is powerful. Scary in a way to be honest. The amount of information we know about people and what they want is to a level of detail you couldn’t imagine. This is part of the pros and cons of the world we live in. The world of technology and rapid machine learning expansion.
My Family Fell Prey To Exactly This
Recently, my brother had his first baby girl. She is amazing and an absolute joy. With this, my mom offered to watch her for two days a week. They live in the same area and my mom has been dying to become a grandmother so she was excited to finally step up. At the time she was driving a 2008 Nissan Altima with 125,000ish miles. A perfectly sound car that was safe and easy to drive.
Out of nowhere, my parents decided they needed to buy a new car because of all the amazing safety features. A brand new car. When they told me they were thinking of getting a new car, I told them they should buy a used car. Something that was 2-3 years old with some miles on it. They were adamant that a new car was necessary because of all the new technology and safety features. Ok. I am not going to fight them on it. I didn’t agree and still don’t agree with it, but if that is what they want to do they can. And that was exactly what they did.
Nothing wrong with it, but don’t think it was a good decision financially.
Key Takeaways:
- You don’t need a brand new car. Old cars don’t magically become unsafe as you enter a new year.
- Don’t fall prey to the marketing done by the large car companies. They have one goal and one goal only. To sell you on the fact you need whatever the latest and greatest technology is.
- A car by definition is a liability. It takes money out of your pocket. Unless you are renting it out on Turo (the Aribnb for cars) and then it is an asset.
