If you are in the market for a car then you have likely asked yourself whether a brand new or second hand car will be best for your situation. This is often the case whether we are looking for our first car after passing our test, or are looking for a replacement car to the one we already own. The truth is there is no right and wrong answer as to whether a new or used car is better, it all depends on your personal circumstances. Having said this, there are some important things to consider when you are making your decision and these points can make it much easier to choose the right car. For most people, the most important thing they will need to factor into their decision is their budget. It is a sensible idea to set a budget before you start your search, this way you can be assured that you won’t overspend on your vehicle and will be able to make an affordable choice.
When it comes to setting a budget for your car purchase you will need to decide whether you will want to buy the car outright or use a car finance plan. Buying a car outright will be the most expensive option in the short term, even if you are choosing a budget friendly car. Finance options are usually available on new and used vehicles, and allow you to split the cost over time. Finance plans help you to spread the cost, but they do usually mean you’ll pay more for your car in the long run because of the added interest. Interest rates can vary but you can expect them to add around 4% - 8% onto the cost of your car. The interest rate you pay will vary depending on the car you choose, whether it is new or used, and where you have bought it from. Once you have decided whether you want to pay for the car outright or make use of a finance plan, you will need to make sure you have the funds to cover the expenses. If you are buying outright then you may need to put some money aside over time and save up so it’s a good idea to do some research into the kind of car you can get for your money. For people who are planning on using finance plans to buy new or used cars the best thing to do is to fill in a finance plan calculator online or call your local dealership to ask about their plans. You should do this in order to ensure you are able to commit an affordable amount of money for your repayments and to avoid any financial surprises.
There are many things to consider when deciding whether to buy a new or used car aside from your budget. For example, if the specific trim level, colour or other specifications are important to you then you might prefer to buy a brand new car that you can configure yourself. People who want to buy used cars will need to be more flexible in this regard because it will be unlikely that they can find a car that meets their preferences in terms of colour, engine size, trim level and more. As such, when you are buying a used car you will need to prioritise some features over others. Many people prefer to buy used cars because they have done their most rapid depreciation before being bought used. A brand new car will depreciate in value by roughly 30% in the first few years which can prove to be quite a money sink. By choosing a used car you will avoid the period of time that cars decrease in value the fastest and therefore get the most out of your money. Newer cars tend to be more economical and will cost less to fuel, especially if you choose something with a small, modern petrol or hybrid engine. Fully electric cars are the cheapest to run, but they do tend to be more expensive to buy because of the expensive parts they contain and the fact that the ones with a larger range tend to have larger, more expensive batteries.