Buying a new car in 2021
A good time for dentists
by KEVIN KUO DDS, MMSc | June 30, 2021
KEY POINTS
0% financing
Expensive used cars
Inflation
Technology
Although buying a new car is usually not a good investment, this year can be different for some dentists. This is particularly true for any dentist with an older car or a longer commute in the city.
Right now, in 2021, interest rates are still kept low by the Federal Reserve. The Fed is still propping up the economy to get the United States out of the pandemic and to lower unemployment in the country.
Low-interest rates then give auto manufacturers and dealerships the ability to offer low financing for customers. Many of which are even offering 0% financing for 60 days with no money down!
Typically, I would recommend buying a used car. However, the used car market is extremely hot right now with little inventory and high prices. At these levels, buying a new car would be a better deal.
Aside from financial advantages, many new cars at basic trims offer safety features, like front collision avoidance, blind spot indicators, lane assist, lane centering, backup camera, day-time lights, Apple CarPlay, Android Auto, and more. Prior to 2021, many of these features were only offered as upgrades on more expensive brands and trims.
On a final note, inflation will continue to rise for the rest of the year. Supply chains are still disrupted due to the pandemic, while the demand for cars continues to rise. Aside from used car shortages, there will be a low inventory of new cars as well.
