Why do people buy brand new cars from the dealer?

Not only can you choose everything about your car but the main thing is that you know the history of the car, is you buy a used car there are so many things you will never know. For example if you by a second hand sports car do you honestly think that somebody hasn't thrashed it? Who would buy a sports car an not drive it hard but if you get it new then you will never have to worry about previous owners and history, think about it.

for the warranty and because they have the money, and they WANT a new car also, they get to pick options and color, unlke when you buy a used car and have to take what is available

I'm glad you have all of the answers. But what is your question exactly. Just be glad there are people out there who buy new cars so you can buy them after 3 years.

They can choose exactly what they want. They can be satisfied that nobody has ever beat on it or got it in a accident.

To allow you to find bargains on used cars.

I don't believe in buying new cars either. Some people like the feeling of security and peace of mind that you have with a new car. Some buy them for business purposes, depreciation and tax write offs. Some people buy them just to satisfy their ego and look successful. A lot of people buy from dealers because they find out real quick that most private sellers with late model used cars are way over priced because they owe so much on them. Another thing that you don't seem to understand is that it doesn't manner if you're buying from an individual or a dealer you're paying cash as far as they're concerned unless they are actually financing the car for you them selves.

You make a lot of valid points. If people buy from a private seller, it can be much less expensive. However, there are a few negatives about buying a late-model car from a private seller and these leave people feel uneasy about buying a used car: 1) There is an impression that you are buying someone else's problem - maybe yes, maybe no, but the perception is there. 2) Most people selling late-model cars are still financing them - this is a huge hassle for a buyer. 3) Scams. Since the recession started a couple of years back, the late-model used car market has been booming with buyers looking to save money, as you stated in your example. This demand for some used cars has actually increased the market value of many used, in demand models. For the first time in history, when you factor in special financing and cash back that are not applicable to used vehicles, sometimes it is actually less expensive to buy new. Regardless, I always recommend people decide what they want first and then do specific research to see is new or used is the best decision for them. If you can get 0% financing on a $20,000 car, over the life of the loan, that will mostly offset the cost of the same, late model used car for $16,000 at 6% interest for 60 months.

They want the options such as engine or packages. Most people buy them "off the lot" where they take what they have and that is simply a matter of it's new and I don't want to bother looking. Another thing is financing they will be able to trade there old car towards a down payment on the new car. I love classic cars/trucks etc But not every one has the cash to put up the money. When someone tell the bank they want to buy a car for say 10,000 that is 30 years old they are going to be hesitant opposed to giving out a 30,000 loan for a new car. Some people just buy things new.