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Should You Buy American Cars or Imported Cars? (Part 1)

One of the first questions car buyers must answer is whether they want to buy American cars or imported cars. There are a variety of potential benefits and drawbacks to both options. The key is considering what your priorities are and select a vehicle which best fits them. It is important to note that all of the benefits and drawbacks of buying American or imported cars are broad-based issues which are generally true but may vary from one make and model to another.

Benefits of Buying American Cars

There are several notable benefits of buying American cars. One of the most obvious benefits is they are significantly larger and more spacious. The width of roads and highways in America is far wider than in many other countries. This has afforded American manufacturers the luxury of building a wider cars with more spacious interiors. Not only does this make cars more comfortable but provides specific advantages for sedans and luxury cars. It is also why many of the best SUVs are American-made.

Another benefit of buying American cars is the insurance rates are moderately lower than many imported cars. While this will vary from one model to another to equivalent cars, one American-made in one imported, may have differing insurance rates based upon where they are manufactured. While this is not necessarily a direct causal link there have been several studies noting domestically manufactured cars are often less expensive to insure.

A subtle benefit of buying American cars, especially if you are buying a new car, is the long-term financing. Domestic manufacturers go to greater lengths to provide consistent, long-term financing for new car buyers. While this benefit rarely extends to the secondary market, it is something to consider if you are purchasing a new car.

Drawbacks of Buying American Cars

There are two primary drawbacks of buying American cars. The first is they devalue faster on the secondary market. For people who buy new cars and want to trade the man in several years a domestic car returns a lower bang for your buck. On the other hand, if you are in the market for a used car than American cars typically offer better savings opportunities.

A well-known issue of American manufactured cars, especially over the past few years, is the significant number of recalls from Detroit automakers. This bad press is often considered a drawback from purchasing domestic cars, however several studies of noted that the total number of recalls over any given 10 year period are fairly similar between domestic and international manufacturers.

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