New Year, New Car?

By Features Desk

Tuesday, 02 January 2018.

If you are looking for a new car, there are many different factors you will need to take into consideration. Not only does this include the make and model of the vehicle, but you will also need to decide whether you are going to purchase a new or used car. There is no right or wrong answer when it comes to this; it is all about figuring what is right for your situation. Read on for some advice that should help you to make up your mind.

The first thing you need to think about is your purpose for requiring a vehicle, your likely level of usage, and the important features you are going to be looking for. Of course, when we say the purpose of needing a vehicle, we don’t mean simply to drive – that’s a bit obvious. Are you buying a car for work purposes? Or, are you looking for a family vehicle, for example? After all, looking for new and used trucks is going to entail a different approach when compared with searching for a vehicle to take you and your young family on weekends away across the country.

It is also important to look at the benefits associated with both new and used vehicles, so you can then determine which option is the best for you. You need to think about which benefits are most useful and advantageous for your needs. For example, if you only have a limited amount of money available, going down the used option may be the best solution for you. Used vehicles cost a lot less, and this may mean that you are able to get a vehicle that you otherwise would not be able to if you were buying the brand new version. This can be an important factor for cars for both business and personal use. After all, it may be important for you to drive around a decent company car, as this will have an impact on your brand image.

Another benefit associated with going down the used route is the fact that these vehicles tend to have lower insurance premiums. This is something that is especially important for young drivers who have not had their licence for long. Insurance premiums tend to be exceptionally high at this stage, so it is vital to choose your car with care so that you do not end up driving the price up without intending to.

You also need to think about the fact that cars depreciate in value quickly. In fact, they depreciate fastest in the first two years of ownership. This means that the moment you drive away a new vehicle, the value of it is going to go down considerably. You don’t have such a drop in value when buying a used car.

On the flip side, there are a number of reasons why people prefer to purchase a new vehicle rather than a used one. This includes the fact that interest rates can be lower for new cars when compared with used cars. You will find that is typically a lot more vital than the upfront cost, especially when it comes to long-term vehicle loans.

Of course, the main reason to go for a new vehicle, be it a van or a truck, is because of the reliability levels you will benefit from. When you go for a used vehicle, there is always the risk that the car has had a patchy service history, even if it is up to date on the MOT front. To avoid car repair issues and keep maintenance expenses down as much as possible, a new vehicle is the best option to go for.

Aside from considering the pros and cons of both options, and determining what you really want from your vehicle, there are a number of critical questions you can ask yourself to help you to determine what is going to be the best option for you. For instance, you should ask yourself whether you could cope with the time that a used vehicle spends in a mechanic’s shop? Used cars often come with more downtime than new cars. This carries on from the former point regarding reliability. You need to think about what this reliability means for you. If you only require a car for leisure purposes, this may not be such a big deal. However, if you are buying a company car or looking for a truck for your business, reliability is likely to be one of the most important factors. After all, time off the road could not only mean an expensive repair, but you could lose money in other ways, for instance, in terms of business lost.

Another question you should ask yourself is whether you should take the new car depreciation hit? Depreciation is a key factor when it comes to buying any vehicle. It is a hidden cost that most people do not take into consideration. On average, most cars will lose between 20 and 30% of their value the moment it is driven out of the dealership. In fact, some cares can depreciate by up to 50% within the first three years. You need to ask yourself whether you should be taking this hit, or whether you would be better off going for a used vehicle instead. It’s important to not only think about the here and now but the future resale value too.

Hopefully, you now have a better understanding regarding the pros and cons associated with both new and used vehicles, as well as the different factors that must be considered when making your decision. As mentioned, there is no right or wrong answer: it is all about figuring out what is right for you. After all, the reasons to buy used or new are not the same for everyone.