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I would probably be perpetuating the very trap I’m trying to help people avoid if I were to say that it’s perfectly understandable why any economically active adult who works hard for their money would want to experience all which comes with driving a brand new car off the lot. After all, that shiny, new set of wheels serves as a physical manifestation of your hard work, but I’m not going to perpetuate that way of thinking at all!

Instead, I’m going to try and make you see, via some very valid points, why it probably always makes better financial sense buying a used car over a brand new one.

Value retention rate

Depending on what you buy your car for, as much as it’s perhaps most accurately referred to as a liability, it can indeed be an asset. As an asset though, there’s probably nothing that loses value faster than a brand new car. It’s true that if you drive your brand new shiny car straight off the lot and into a pre-owned dealership, you won’t get anywhere near what you paid for it.

Chances are you wouldn’t have even bought it cash in any case, so that ratifies the argument of a used vehicle retaining value much better than a new one, since you’re likely to be able to afford buying it cash, which means if you ever need to sell it off, you would get a good resale amount for it.

There’s this broad band of time, seemingly, during which an older vehicle model retains its value much better than any new car.

What is the purpose of your car?

If we’re honest about it, apart from the lucky few who are slap-bang in the middle of those years when their parents sponsor them with a car to afford them the liberty of enjoying more mobility and enjoy their freedom, the likelihood is that the car you own or the car you’re paying off is nothing more than a utility you need to get you to and from work. What difference does it make then that it’s a brand new one, with a big petrol-guzzling engine as opposed to being a more sensible, older model that saves you lots of money?

It’s more sensible to go with the latter, all things considered, including running costs, value retention, etc.

The cost factor

If you get it just right in terms of the age of the used car you choose to purchase over a brand new one, the biggest takeaway is indeed that of the cost factor. Obviously you don’t want to go too old with a car that will give you all manner of repair and maintenance headaches.

Making sure to get actual value out of buying usedThis brings into focus the need to ensure you get the actual intended value out of buying used over buying brand new. Check out these tips for buying a used car, as detailed by one of the UK’s leading short-term auto insurance firms, Dayinsure.

Post Author: Victoria Field

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About Me

Victoria Field – Finance Blogger

Hello and welcome to my blog – The Cheap Girl, which is a personal finance blog covering personal finances as part of the broader topic. I’m Victoria Field, privileged to be able to say that I’ve lived part of my life in two of the world’s most powerful economic centres, New York City and London!

 

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