New Versus Used Cars: What’s Right for You

You need a new set of wheels, but can’t decide whether a new or used car is for you. Here are a few key factors to take into consideration before you part with any cash.

Depreciation
As soon as a new car is driven off the forecourt it becomes a used car, and starts depreciating - or losing value - immediately. A brand new shiny vehicle may appeal, but remember that the average car stands to lose 40% of its value in the first three years. If you buy used, someone else has already born the brunt of depreciation, whilst you benefit from slower depreciation as the motor ages.

Additional Costs
The biggest additional cost involved in purchasing a new car is a higher insurance premium and registration. Used cars will hit your wallet through faulty parts that need repaired and replaced.

History
Motorists learn about the reliability of models over time, through critical and consumer reports. A used car that has a good reputation and many consumer references is a sound investment, whereas a new car will have few such reviews, and may only be judged by the manufacturers legacy. Understanding the strengths and weaknesses of a particular model can help you make a more informed decision when shopping around.

Warranties
A major benefit of new cars is the extended warranty you will get with them. Used cars are unlikely to have such comprehensive warranties, and a private seller probably won’t offer one at all.

Reliability
It’s not always the case that brand new cars are more reliable. If you pick the right model, a used car can be extremely durable and reliable. Of course, if you do buy new, you have the reassurance of knowing that the car has not been mistreated.

Safety
Increased emphasis on safety measures might lead you to believe that new cars are safer. However, most of these measures have been standard for a number of years now, so it’s perfectly possible to find a 5 or 6 year old car that’s just as safe as a new one.

If you decide on buying a new car, Co-operative Insurance comes as recommended for car insurance.