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Wednesday, November 25, 2015

Could buying your car new save you money in the long run?

New versus used cars
New cars have several financial advantages that used cars do not have
Car buying is a complicated task. It signifies a huge investment, and we want to get the most for our money. With the financial hardships and rigours of the recession still fresh in our minds, we’re all loathe to pay over the odds for what we need, and that’s one of the reasons why so many of us settle for second-hand models.

But is this wisdom really as cost-effective as we think? Although the initial outlay might be much lower, the long-term calculations could surprise you…

Fuel consumption


Buying a used car will always be cheaper than purchasing its contemporary counterpart, but owning and acquiring are two very different beasts, and it’s often the case that buying a brand new model is more cost-effective in the long run.

Your weekly fuel consumption is a prime example. The current focus on CO2 emissions has had a marked impact on car manufacturers, and more of them than ever are making a real effort to reduce fuel consumption and make cars more environmentally friendly. The less you spend on fuel, the lower your costs will be overall, meaning that a new motor might be the ideal option for those on a budget.

Maintenance and parts


Another advantage to obtaining a car fresh from the showroom is its improved reliability. Most vehicles have a certain shelf life, with different parts lasting for varying amounts of time. The older a motor is, the more likely it is that some form of malfunction will occur, meaning that maintenance costs can be much higher for used vehicles. With the price of parts also likely to be maximised due to their increased scarcity, you’re looking at paying out a lot more to keep a second-hand car on the road than you would for its modern contemporary.

Insurance


The increased risk of problems will be reflected in the amount that you pay out for your insurance and breakdown cover. The higher likelihood of parts breaking and recovery being required will push up your premiums, and this could really add up in the long run.

Road tax


One final consideration should be theamount that you’ll need to pay out in road tax. Road tax charges are heavily influenced by your car’s CO2 emissions, and the newer it is, the lower this figure is likely to be.


So, could it be that buying new is actually more economical than the alternative? The answer appears to be a resounding ‘yes’. Select a showroom model today to keep your costs down tomorrow.

Image: Pictures of Money/Flickr; "Car Costs"; CC BY 2.0