5 Reasons Why You Should Buy a Sedan
We understand that SUVs are all the rage now, and sedans seem like they went out of style years ago. But sedans are still the great cars they’ve always been, and now they’re the smarter decision from a financial point of view too. We’ll explain.
Price: Car manufacturers are pulling reasonably priced sedans from their lineup and replacing them with higher-priced SUVs. Look carefully, and you’ll see that this is true. A lot of entry-level sedans are being replaced with more expensive front-wheel drive SUVs that are actually based on the same platform. If you choose an SUV over an equivalent sedan, you’ll be spending at least $1,000 more. Some even cost over $6,000 more.
Insurance: Remember, cars that cost more to buy are also more expensive to insure. Plus, sedans always have significantly more safety technology and better crash-test ratings than SUVs. This also means that insurance companies charge less to protect them. Imagine having to pay higher premiums for the life of your SUV.
Financing: But, you may argue, the financing options available today are better than ever and make even the higher-priced SUVs affordable. But consider that the standard term for a car loan has gone up from 48 months to 72 or even 84 months. You’ll be paying for that SUV for seven years. By that time, it will depreciate, and you will owe more than what it’s worth. And by the time you’ll be done paying it off, you’ll be looking for your next car and get into debt again.
Mileage: Sure, engines are more efficient than ever. But compare the efficiency figures of sedans and equivalent SUVs, and you will find that sedans are significantly more efficient than SUVs. The SUVs that are more efficient than their sedan counterparts are hybrids, and that means they are much more expensive. But, you think, gas prices are low now. That’s for now. Can you guarantee that they won’t rise over the next seven years that you’ll be spending paying off this SUV? Also, if you drive a sedan for that amount of time, imagine the amount of extra cash you’ll have. Saving money for a rainy day is always a good thing.