Why The Auto Industry Wants You To Buy A Brand New Car
It’s no secret that car manufacturers have one big problem: people aren’t buying nearly as many brand new cars as they used to! In fact, the issue is so vast that carmakers have to stockpile new vehicles in old airport runways and storage areas.
The good news is that the economy is showing signs of growth. More people are buying new cars these days. Albeit not in the same volumes as before the global economic crisis from the last decade.
Aside from boosting sales, what other reasons do car makers have for wanting more people to buy brand new cars? For today’s article, I decided to do some research into this fascinating topic. Here’s what I’ve discovered:
Lower maintenance costs
One of the biggest selling points for today’s modern vehicles is the fact that you can run them for longer before they need a service. Many cars can do around 20,000 miles before they need an oil change and a general service checkup.
That’s because advances in oil technology mean that engines can last longer on the same oil than ones from cars built five years ago. People will want to spend as little as possible on maintenance costs.
I first discovered how modern cars have longer service intervals a couple of years ago. I had my (new to me) car booked in at a local car service center. They told me to come back in another 10,000 miles because my pride and joy had a long service interval. To say I was happy at saving some cash at that point was an understatement!
Lower CO2 emissions
The thing about cars is that they pollute the environment. Petrol and diesel power plants produce carbon emissions. In general, older engines and high-performance ones are the worst offenders.
These days, carmakers are building motors with better efficiency. For example, take Ford and their range of EcoBoost engines. They are small-block units that use turbochargers to increase efficiency and lower emissions.
Another feature of modern cars that lower CO2 emissions is start-stop technology. When you get to a set of traffic lights and wait, the engine turns itself off. Put your foot down on the clutch (or off the brake pedal if you drive an automatic), and the engine starts up!
Better finance deals
The auto industry knows that most people cannot afford to buy brand new cars outright with cash. That’s why they’ve come up with some ingenious ways to tempt buyers! For instance, finance deals with 0% interest make it easy to spread the cost without increasing it.
Lease deals mean that consumers can upgrade to new cars every three years or so. And they also avoid the depreciation hit that other new car buyers have to swallow.
Thanks to better fuel efficiency and increased security, new cars are cheaper to insure than new ones!
The car manufacturing industry uses that information to its advantage when advertising new models. I read an article about how Fiat is offering free insurance for young drivers if they buy new “500” superminis.