Buying a car can be a stressful thing to do, even if you have already been through the process many times before. There are hoops to jump through and decisions to make, and there’s always that pernicious feeling that you didn’t make the right choice after all. Money drives a lot of this anxiety, and rightfully so. Given you’re after the best and cheapest possible deal, what are some considerations you should bear in mind?
Buying New
Obviously buying a brand-new vehicle is the most expensive option. Indeed, this fact is the predominant reason for which most buyers lean towards the used car market for their next set of wheels – and accounts somewhat for the recent boost in used car sales.
There are, however, good reasons to buy new, even is funds are a little tight. For instance, some people may have non-negotiable requirements for safety or modern technological features. Others might be seeking to move away from the ecological and ethical quandaries around fossil fuel use, drawing them to the ever-developing electric vehicle market. Still, it is important to bear in mind that new vehicles depreciate in value the moment they are purchased, making them poorer stores of value than used cars.
Buying Used
Speaking of which, the used car market is a large and essential element of the UK’s automotive industry, with a wide and plentiful choice of competitively priced ‘nearly new’ reliable vehicles. Many cars lose the most value in the first three years of their life, after which the rate of depreciation slows; this can reduce the amount lost on a car after ownership, allowing owners to rake back more of their money for the next. However, the caveat is that used cars tend to be, by law of averages, less reliable than new ones.
Financing
Whether buying new or used, you might find paying up-front a tall order. Fortunately buying brand new or used can both be made easier with financing solutions. Financing can also be an effective solution by spreading the cost; enabling you to afford a luxury model such as a used BMW Series 2 by spreading out the cost over a set period, and you can still benefit from reduced depreciation rates afterwards.
Here, though, it is important to understand the difference between financing products. Some come with higher rates of interest than others, and certain leasing agreements – can leave you with no asset to speak of at the end of the agreed lease term.
Navigating the Used Car Market
When it comes to the used car market, ‘savvy’ is the word. Buying privately can give you better options for haggling on the price, but in order to do so effectively – and not be saddled with an unreliable vehicle at the end of it – you need to do your research, and have a more-than-basic understanding of car mechanics. When looking at online dealerships, something as simple as setting a filter for slightly older models can save you thousands of pounds.
Whether you plump for the latest 24 plate or a much loved nearly new vehicle, do your homework beforehand and don’t be shy when it comes to haggling on the price.
