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5 Reasons To Splurge On A New Car

February 20, 2011

The very first car I ever bought was a 1979 Ford Mustang. I was 19 years old, ending my Freshman year in College and had gotten a job at a grocery store that I needed transportation to as it was several miles away. I remember as my Mom co-signed for me  the dealer looked me square in the eyes and said “can you afford these payments, as it will be for the next four years?” Sure I said, not realizing that $194.00 a month in 1979 was a lot of money and I would need to keep working for the next 4 years just to pay for it…and go to school. But I loved the car. It was burgundy and I actually kept that car until I had my first kid and traded it in for….are you ready?… a mini-van. ARGH! But times are a changing and mini-vans are the hip thing to own, especially now that they come with TVs, refrigerators and even beds…yeah you can live in them if you needed to. Clearly I was ahead of my time. Clients will often call me and ask if they should buy a new car or not. From a strictly financial standpoint, it pays for most people to buy used cars. But five engineering improvements might make it worthwhile for you to consider a new model…

  • Safer brakes. Today, even many economy cars have four-wheel disc brakes, and antilock brake systems are becoming common. Brake Assist – a new feature that further reduces stopping distances during emergency braking – is also being featured in family cars from Toyota, Volvo and others. Brake Assist automatically applies full pressure to the system during an emergency stop if the drivers fails to depress the brake pedal fully. This slows the car more quickly.
  • Intelligent navigation systems. The latest in-car satellite navigation systems can direct you around traffic jams and help you find the best route to your destination. Real-time data about traffic conditions is uploaded into the system automatically every few minutes via the car’s onboard satellite radio hookup. The data are compared against your planned route in the global positioning satellite (GPS) navigation computer. If there’s a bottleneck ahead, an alternate route is displayed.
  • Bodies that don’t rust – and paint jobs that last. Today’s car is so well-protected against rust by multiple coats of protective under coating and chip-resistant primers that body rot is becoming as rare a sight as a wood-paneled Pacer.
  • Engines that don’t pollute. At least 95% of the combustion by-products of any newer model-year car is harmless water vapor and carbon dioxide. Several models from Ford, General Motors, Honda, Toyota and Volvo qualify as ultra-low emissions vehicles (ULEVs), with virtually no harmful emissions.
  • Decent gas mileage. Even the worst offender, two-ton V8 sport-utility vehicle can get mileage per gallon (mpg) in the mid-teens on the highway. And American drivers no longer have to cram themselves into microsized subcompacts to get 30 mpg.  

Certainly it is safer to buy a car today than in 1979. Let GAI (www.gunwel.com) assist you in financial decisions, as they can affect your tax scenario. There have been some sweet new car tax credits that the IRS has come up with that may benefit you.  Give us a call at 212-979-6830 or stop by for a visit. We’d love to hear about your first car and what that experience was like. See you soon!

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2 Comments leave one →
  1. February 20, 2011 4:36 pm

    I read this article and had to laugh since that was my first car too and much the same situation except how long you kept it! (another story) Also, mine was gray, not burgundy!

    Great points made on why people should consider a new car, yet only if their financial situation warrants it.

    Thanks for sharing!

    Michael
    CCO OutMaturity

  2. February 21, 2011 1:32 pm

    What’s really funny, Michael, is that a friend on facebook read this and posted how he remembered the car and my obsession with it. Now living in NYC I don’t even have a car. It seems like a lifetime ago!
    Cheers
    Bill

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