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New Car vs Used Car: Which Should I Buy?

Most people believe that buying a used car is more cost-effective than a new one, but this isn’t necessarily always the case. The cost of running a car is dependent on a range of factors and in some cases, it may actually be better value for you to buy a new car.

This article will look at the factors you should consider when making the decision between buying a new or used car.

Ways to Pay

Buying a car is likely to be one of the most expensive purchases that you make in your adult life and there are many loans and financing deals available to help you. Spreading the cost over a number of years is ideal for when you’re buying a new car. However, if you want to own the car outright, the more affordable option would be to buy a used car.

If you’re unsure, consider consulting a dealer that sells both new and used cars, like Unbeatable Car, who can give you a better idea of the options available.

Running Costs

When you’re deciding on whether to buy new or used, it’s not just the upfront cost that should be taken into account. Running costs can vary from car to car, but research has shown that due to low-rate finance deals, it could be as much as 73% cheaper to run a brand new car than a model that is just five years older.

Depreciation

Motoring cost experts CAP Automotive claim that choosing a car that holds its value will help you save more money over just focusing on fuel economy. They have created a list of the top ten cars for beating depreciation, with Land Rover, Tesla and Maserati at the top for holding their value.

Choosing the right options when you buy can also minimise depreciation. A built-in sat nav and air con are very desirable on mainstream cars and also, metallic paint and leather seats can help an executive car hold its value.

Service and Repairs

Servicing costs and maintenance will be cheaper on a new car than a used one. Cars generally need a more extensive service every other year, so if you buy a new car, you will only need to pay for an expensive service once over the course of three years, rather than making the expense twice with a one-year-old car. Also, you must consider the wear and tear when buying a used car and the costs you’ll pay for parts and repairs.

There are many factors besides upfront cost that you should consider when deciding between buying a new or used car. Take into account the running costs, depreciation and service requirements before deciding between a new or used car.

© Tushar Parmar  2017

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