Some car brokers may be able to do the leg work for you. They can assist in helping you choose between a new vs used car, saving you the run-around, saving you thousands of dollars as well as offering the right advice. Then there is a decision “do I buy new or used?” There are some factors to consider when deciding between the two, some of the factors include:
Affordability When Buying a New vs Used Car
If cost is no inhibitor, then who wouldn’t want to drive a nice new car. Unfortunately for some of us, cost does need to be weighed up against other factors when deciding which car to buy.
Thought needs to be given as to how a car is going to be used. If a lot of time is going to be spent in the car, such as with regular commuting, or long distance trips, a high level of comfort might be important. A new car might have the edge here, whereas if the car is predominantly for irregular weekend trips, a second hand car might suffice. If a lot of driving is to take place in a rural area, where roadside assistance in the case of a breakdown might be a bit harder to come by, reliability may be key. A new car might be preferential here, or at least a very reliable second hand car.
First or Second Car?
Some consumers may opt for a new car if it’s going to be frequently used, and absolutely needs to be reliable. For example, the main car for commuting to work, or the car which a whole family relies on to get around. If the car being purchased is a second car for the household, these issues might not be quite as important. A second “convenience car” for odd trips when the main car is not available might mean that a used car might be sufficient, where a trade-off on cost might be able to be made.
Depending on the age of the vehicle, the interest rates on used car loans from finance companies tend to be a lot higher then for new vehicles. If you are financing a vehicle, it may be worthwhile getting comparative payments on new. You may not be saving any money at all if the payments work out more for a used car.
Reliabilty vs Cost Savings
As we can see from the above examples, deciding between a new vs used car is about trade-offs. Used cars may be cheaper, but at the sacrifice of something else, whether that be warranty, reliability, comfort or other.
Almost all new cars come with some sort of warranty, whether that be for a year, or a few years, for distance travelled (eg 100,000 kms), or a combination of both. This can be a great comfort to consumers. Some newer used cars may also come with some sort of warranty, but probably not for the length of a new car warranty. Older cars might have a very limited warranty, or even no warranty at all, so one needs to be confident about the condition of an older car, before putting down one’s hard earned cash.
Fuel Efficiency and Fuel Costs
Smaller cars are likely to be more fuel efficient that larger cars. In terms of similar makes however, a newer car is likely to be more fuel efficient than an older one, due to technological advancements over time. Newer cars, with lower mileage are also likely to run more smoothly than an older make of the same car, with higher mileage.
Long Term Running Costs
While newer cars should be more fuel efficient, and require less repairs, sometimes they may be more expensive to fix. With many newer cars being electronically controlled, one might be limited to mechanics that have expertise & equipment to handle specific makes (for which one may pay a premium), as opposed to a standard mechanic more versed in more pure “mechanical” repairs.
Contact National Car Brokers for reliable independent advice or if you are looking to save thousands on your next new car.