Are you better off buying a used car rather than a new car?
October 9, 2008
With the 2008 new number plate hitting showrooms across the country, many consumers may be thinking about getting their hands on a brand new motor. However, unlike new registration launches over recent years this year could see a marked drop in the number of consumers able to treat themselves to this luxury. Most households are suffering real strains when it comes to their finances, and many simply cannot stretch to the luxury of a new car.
It is important for cash strapped consumers to consider whether it is really a wise decision to purchase a brand new car in the current financial climate, or whether they will be financially better off opting for a used car. One very important thing to bear in mind is that if you opt for a brand new car you will see the value of the vehicle depreciate by 20% as soon as you drive it off the forecourt, and this means that you will have lost thousands of pounds potentially within a matter of seconds.
Of course there are a number of advantages to purchasing a new car. You will be able to buy the car that you want, and you will know that as it is brand new there is no need to be concerned about its history. You will be able to enjoy reliability, and won’t have to concern yourself about MOTs for the fist three years. Also, because the car is brand new you won’t have to replace costly parts for a long time to come, and you will still have the manufacturer’s warranty in the event that something does go wrong when you purchase the vehicle. You may even find that there are some additional perks on offer when you purchase a new car. For example, you may be able to get a roadside assistance package that lasts for the same period as your warranty.
However, it is also important to consider the disadvantages of buying a brand new car. Of course, one major disadvantage is that it is going to cost you more money, and the fact that you will lose such a chunk of the vehicle’s value as soon as you drive it away. You may also find that if the manufacturer of the vehicle is due to bring out an updated version your vehicle could lose even more value, as it would be classed as an older model.
There are also pros and cons to consider when it comes to purchasing a used car. The main benefits are that it won’t cost you as much, and because it is not a brand new vehicle you will not have to worry about depreciation as soon as you drive it away. You can also enjoy a good choice of used car dealerships, and you can get finance on the cars, so this can make it more affordable.
However, when you buy a used car you can never be 100% certain when it comes to the history of the vehicle, and you can never be sure with regards to whether parts are going to pack up pretty quickly. Depending on the age of the used car that you buy you will also have to fork out for MOTs each year and therefore for the cost of any work that needs doing as a result of the MOT.
Related Articles
- Increasing number of higher end buyers employing services of property agents Many property purchasers from the top end of the market have turned away from the traditional method of trawling through estate agents' listings, traipsing from
- Can you afford not to employ a property search agent? If you are a potential property purchaser looking to buy a property at the higher end of the market you may fare better and save
- Mortgages Investing in property is something that most people aspire to do, and buying your own home provides the ideal opportunity to invest in property to
- Improve your finances over 2008 With the New Year lurking just around the corner now is a great time to make some plans relating to your finances for the coming
- If you are in a house share you could face problems in the future In a recent report industry officials have pointed out that homeowners that are part of a house share mortgage could really suffer in the future,
Comments
Got something to say?