Apart from purchasing a house, buying a car is probably the second biggest investment you will make in your lifetime, so this is something you have to make sure you do everything to get it right, to make sure the option you choose is right for you.
On average, people keep their vehicles for around five to ten years, which makes it a definite long-term investment. Then you need to factor in the amount of time you will spend in your vehicle, from the daily commute, social or other activities.
So, the question is, what would be the best option, buying a new car or a used car?
The new car option
As with all brand new products, there will be some great advantages of buying brand new which may swing your decision, but don’t be too hasty just from reading the first few lines just yet.
Better fuel economy
In 9 out of 10 brand new cars you can purchase today, greater and improved fuel efficiency is generally the norm, and is improving progressively. This could be a huge benefit if you are planning on spending a lot of time on the road.
It makes sense if you are buying a brand new car with zero miles, in theory, it should last longer than a car with quite a few thousand miles on the clock. So bear in mind that from a long-term point of view and reliability, it’s more likely you will have your brand new car with you most of the time and not in the repair shop just when you needed it for that special family weekend away.
Like with most things we purchase, you can expect something to go wrong with your brand new car at some stage. With a full manufacturer warranty, this will cover you for all the parts and labour of the things that are likely to go wrong with your car. Maybe more peace of mind?
Maybe a used car instead?
The first and most important benefit will cost. Buying a used car will generally mean much bigger savings compared to buying brand new. How many times have you heard that the value of your newly purchased brand new car has lost as much as 10% in the first month and around 20% after the first year alone? Normally you can buy the same model used car for significantly less than the brand new version.
Also, you’d be interested to know, the rate of depreciation happens a lot slower after the initial drop in value. If you have taken a loan or car finance on a brand new car, you could be in negative equity as soon as you drive off the showroom forecourt. Selling a fairly new car will also mean, you will be unlikely to get the same or even near the return on investment due to the massive depreciation in the first few years. But trying to sell a used car which is around 4 to 5 years old, you are more likely to get your money back at least.
Most car buyers will be asked to pay a deposit or use their old car as part exchange to help reduce the monthly payments, lower the interest rate you are paying, and help ensure your used car purchase doesn’t fall into negative equity. The more expensive the car, the greater the amount will be needed for your deposit, hence why buying a used car, the down payment will normally be lower than what you’d be expected to pay for a new car.
Best option — conclusion
The fact of the matter, as stated previously is, buying a car is a big investment, and whatever you do, always do your research first and then this will ensure you are making the right choice for you in your current situation or financial circumstances. Buying a new or used car will come with its own advantages and disadvantages, but the bottom line is when deciding, make sure the car you finally purchase is within your budget.
If you have made the decision to look for a good quality used car, then there’s no better place to begin your search than Best Price Car Sales. With our free UK delivery network, you can have one of our used cars delivered to your home or place of work, normally within three working days.
For more information about our current used car deals and offers, call us now on 02382 549 222 and speak to one of our friendly advisors.