When it comes to choosing your next automobile, one of the key questions will always be whether to buy new or used? There are benefits and drawbacks to both, so it is important to be aware of what these are so that you can make an informed decision based on your circumstances.
The Pros and Cons of Buying New Cars
There are a few clear benefits to buying new. You have the satisfaction of being the first owner, you can benefit from the latest tech and features, benefit from lower maintenance costs, and you will have the cost of repairs covered by the manufacturer warranty.
While the idea of a brand new car can be appealing, you should be aware of the drawbacks. First, they are expensive to buy new, especially in the current climate with factors like the global chip shortage, Brexit, and the pandemic affecting car prices. This means that you may not be able to get a huge amount for your money. Depreciation is also a major issue, with cars losing around a third of their value in just the first year and over 50% after three.
The Advantages and Disadvantages of Buying Used Cars
The main benefit of buying a used car is that they are much cheaper, which means you can get more for your money. Depreciation is also less of an issue with an older car, plus they tend to be cheaper to insure. If you’re looking for specific models, the used car market in the UK offers a wider selection than new car dealerships, and you may find good deals on used cars in Norwich, which has a growing network of local dealerships.
In terms of drawbacks, you are obviously buying a pre-owned vehicle, so there can be issues. This is why it is vital that you know how to check over a used car and get a history check. This also means that maintenance costs can be high, and you will need to take out an extended warranty if you want financial protection.
Financing: How to Budget for New vs Used Cars
Finance can make buying both new and used easier. Personal contract purchase (PCP) is a popular option, as you can return, upgrade, or purchase the car at the end of the agreement. Hire purchase (HP) is another option with a deposit and monthly payments made to pay off the value. Keep in mind that interest rates are high in the UK, which will affect car loans.
Environmental Impact & Fuel Economy Considerations
In terms of environmental impact, new cars are often more fuel efficient, and the government is encouraging the switch to EVs, which could come with incentives. However, used cars can be eco-friendly as they lessen demand to manufacture brand new cars, supporting a circular economy.
Hopefully, the information in this post will help you make an informed decision on whether to buy new or used.