How Practical is Buying a New Car?

Photo Credit: Sandro – Flickr.com

A new car is very alluring. Who doesn’t love something that’s never been used before? It’s never been driven before, it’s all clean and shiny and there shouldn’t be any surprises. However, used has an advantage when it comes to price.

New cars are easier to buy, because dealers have lots of offers on them that may not necessarily apply to used cars. Things like low payments and zero-percent finance are tempting, but whether they will work for you all depends on what you can afford. Work that out first, then go and find deals that fit your budget, as opposed to trying to stretch your budget to fit the deal, whether you’re looking for a new or a used car.

If you have a poor credit rating, then you may not be eligible for the deals that the dealers are promoting. However, there are a number of companies that offer car finance for people with a poor credit score.

Whether you decide to go for a new or a used car, the most important thing to consider is whether it’s right for you. So how do you decide?      

Depreciation

As soon as you buy a new car, the value of your car will drop. That’s because it is now a used car. The amount that a car might drop will vary, however. It depends on the resale value and the popularity of the vehicle.

Maintenance Costs

However, on the flip side of this, there are the maintenance and repair costs to consider. An older vehicle may require more upkeep than a new car, which will require both time and money to be invested in them. However, these costs are not necessarily equal to the cost of depreciation.

Warranties

Car manufacturers often offer full factory warranties and guarantees for a number of years with their new cars, which obviously help allay any fears about the cost of repairs. Used cars don’t always come with this warranty (depending on how old the car is), but you do have a few options. You could buy a warranty, roadside assistance, or breakdown cover to help cover the cost of repairs if you buy a used car.

Safety

One concern that you might have if you’re deciding between new or used is about safety. While you might think that a new car will be safer, this is definitely a subject to consider on a car-by-car basis. Look at the EuroNCAP safety ratings to figure out whether the car you’re after is up to the standard that you want.

from Finance Girl http://www.financegirl.co.uk/how-practical-is-buying-a-new-car/