Buying a new car may seem like a more expensive deal than buying a used one. Of course, you will be paying for a brand new vehicle, compared to buying one that has some substantial miles in it, not to mention scratches, bumps, and the engine lagging due to normal wear and tear. However, buying a used car can be more expensive in the long run.
Used cars are cheaper
The conventional thinking is that buying usedcars can be more affordable. It is indeed affordable when it comes to initial costs; new car prices are slashed dramatically the moment they are driven out of the car shop. It doesn’t matter whether it has only been used for a month, or a number of times, prices go down the moment they are considered ‘used.’
Some people prefer to buy used cars, particularly young or new drivers in anticipation of the other costs that will come with owning their own cars. Some of these additional costs include insurance premiums, driving test costs, and other costs for the maintenance of the car. Thecost of driving tests, whether theory test or practical tests range from £18 and £62, respectively, to double that amount, depending on the company offering it. Insurance premiums reach high as £1000 depending on your age, postcode, car condition, and previous motoring convictions.
New cars are more affordable
It may surprise you to learn that buying a new car can be more cost effective than buying a used one in the long run. A new car may be more expensive at the outset, but the maintenance and running costs that come after buying it can be a lot lower than if you had bought an old car. If you’re planning to buy a new car and looking for a Virginia Beach auto transport company, you may click on the link.
The price difference between new and old vehicles may begin at the outset as more and more car dealers offer big discounts for brand new cars. This is because car firms are eager to move their newer models into the market, and thus, sell them to dealers at a lower price. Dealers then pass the savings to their clients to get more of the market share.
Insurance premiums also tend to be higher when insuring old cars, particularly if it is comprehensive insurance coverage. Insurance premiums for newer cars are lower because they run a lower risk of breaking down, due to its brand new condition. Newer cars may also be exempt from road tax as they have very low emissions. Road tax can go as high as £140 every six months, depending on emissions and the age of the vehicle.
When it comes to maintenance costs and repairs, brand new cars generally come with a warranty for the first few years. This warranty takes care of the service costs, as well as parts replacement worries. Newer cars also have improved fuel efficiency leading to savings in terms of fuel consumption.
A published breakdown of costs comparing a brand new car and a used one of the same brand and model shows the amount of savings in terms of running costs. For example, a brand new Peugeot 208 will have an annual running cost of £1,030 whereas a three-year old and five-year old Peugeot 208 will have an annual running cost of more than £1,700. In these terms, buying a brand new car may actually be more affordable than getting an old one.
