Buying a car is exciting, but the decision whether to save longer and buy a brand new car or to buy a used car can be a difficult one. Despite the higher cost, sometimes buying brand new can actually be a much better deal. Before you decide, make sure you’re in the know about the pros and cons of buying a new car – as well as what buying a new car entails.
The pros of a new car
Despite being the popular option, buying a used car isn’t always the best way. Used cars often cost more in MOT’s, have much higher road tax and often require expensive repairs. New cars can also be safer than older models, due to new safety measures and regulations being introduced and developed over the past decade. This is why buying a new car can be appealing – and these are the key things that might end up saving you money when buying new rather than old:
New cars aren’t required to be put through an MOT test if they’re under three years old – it’s only after these three years that a yearly MOT is required. This means no having to pay for the test during these first three years, which will definitely appeal to some!
2. Road tax
Newer cars often have much cheaper road tax due to their increased eco-friendliness in cars, which means you can save yourself money. Electric cars have no road tax at all!
There is often no need to spend money on satnavs, parking sensors, hands-free phone systems, reversing cameras or other extras with a new car. When buying, you can check the spec of that car to make sure that it has everything you need – or even those little things it might just be nice to have.
New cars tend to have a longer warranty – this tends to be three years, but some manufacturers may go all the way up to seven years. This can be a great help if something goes wrong (apart from fixing general wear and tear), and can really help with those repairs costs.
How much does a new car cost?
For all the benefits of buying a new car, there’s one big downside: price. The upfront cost of buying a new car can be much more than buying a used one. However, if you’re able to find a nearly new car that’s just a few years old, this may make the price more affordable from the dealership, even if the car hasn’t been owned before. Cars that are a few years old are often much cheaper than buying one brand new, straight from the factory, due to cars losing value year by year. So if you’re looking to buy a new car – but don’t want to spend a fortune – or lose money – this might be the best option for you.
Even if a car has a high cost initially, there may be ways to get it cheaper. The most common way of buying a new car is from a franchised dealer, and these dealers often have room for manoeuvre when it comes to price. Dealers usually give themselves a profit margin which you can haggle against, which may cut the cost. The amount of money you’ll get off depends on the car and the dealer, but at the very least you may be able to get some free services thrown in – remember, the dealer is looking to secure the sale. You can also use car supermarkets and brokers to buy a new car, which can be cheaper than dealerships, but these sometimes won’t let you choose your car’s spec and can have hidden costs attached, so be careful.
Whenever you go for new, nearly new or second-hand, make sure to be clued up on what you – and your wallet – can expect.