Finding yourself without a car puts a real spanner in the works. Whether you’ve crashed it, or it just died on you, having to relying on the bus to get around just sucks.
When it comes to buying a new car the manufacturers would obviously have you believe that new is always better. But at the same time, you’ve got a lot of people saying that used cars are actually a more sensible purchase overall. Who should you believe?
The major benefit of a new car is that it’s new. That sounds obvious but the fact that nobody has used it before. You don’t have to worry about there being any existing damage to the car which might end up costing you money in the future. Having a warranty is also a huge plus point because if you do need any repairs doing down the line, they’re likely to be covered by the warranty.
As well as the warranty, you usually get roadside assistance cover included as well. When people are considering the price difference between a new and used car, they forget to take into account the extras that you’ll have to pay for with a second hand car.
Leasing is another huge benefit that you can get with new cars. Paying monthly is a much more manageable way of funding your new car and it also gives you the chance to get a new car regularly. For example, if you decide to opt for BMW leasing, you can get yourself a brand new one every couple of years or so. However, the downside is that you don’t own the car entirely.
Finally, the running costs of a new car are likely to be significantly less. With a much stronger focus on fuel efficiency, you’re getting more mileage every time you fill up. Some newer cars are even exempt from road tax because the amount of emissions that they give out is so little. These long term running costs will add up so even if a new car is more expensive to start with, it could end up saving you a lot of money.
The one obvious benefit of buying a used car is that it’s going to be cheaper to buy in the first place but that doesn’t mean that it’ll cost you less overall because of the running costs and added extras that we discussed earlier. Having said that, the insurance costs on a used car are usually a lot cheaper than on a new car.
A used car also holds its value a whole lot better than a new one. When you buy a new car it’ll drop in value by thousands as soon as you drive it off the forecourt. After a few years, it’ll be worth half as much. However, with a used car, this won’t happen. So even though the value is less than a new car to start with, it’s a better investment because it holds more of that value for longer.
While you don’t have a lot of the same guarantees with a used car, it’s a better overall investment than buying new.