Buying a vehicle is exciting but can also be daunting. While there are many questions to consider before taking the leap, the first that should be answered is, ‘Should I buy new or used?’. At Blacklisted Car Finance, we endeavour to answer all your questions relating to that all-important purchase, starting with the most important one: New or used?
Advantages of buying new
- Perhaps most importantly are the warranty, safety, reliability and ‘new’ aspects of buying a new vehicle. Although warranties can be purchased for used vehicles, manufacturer’s warranty comes as standard – for free – on all new vehicles. Some also come with a free, limited time, service plan.
- Safety wise, you can be assured your new vehicle has been built to conforming safety standards, thereby keeping you safe and legal on the road.
- Important in this day and age, is reliability. With a new car, you can rest assured that you are not going to break down at any given moment.
- Finally, the ‘newness’. You know your new vehicle has not been in an accident or mistreated by an uncouth previous owner. You know its history. Furthermore, new vehicles have higher fuel efficiency and lower carbon emissions.
If you are buying on finance, you may get a lower interest rate on a new vehicle but bear in mind that, when the lower rate still applies to a larger amount, your repayments or total cost may still be higher.
Advantages of buying used
- For the cash-strapped purchaser, depreciation is a major concern. While all vehicles depreciate month-on-month, the steepest decline occurs as soon as a brand new car is driven out of the showroom. Some vehicles lose a staggering 40% of their value in the first year but if you buy a used vehicle, depreciation is more gradual.
- It goes without saying that a used vehicle costs less than a new one, thereby allowing the buyer to entertain the notion of upgrading to a better model.
- Insurance is also generally less expensive on used vehicles but shopping around is paramount.
Once you have decided whether new or used would best suit your pocket, you can go onto the more exciting aspects of car buying – make, model, colour etc. Find out more about financing your next vehicle with a rent-to-buy option.