Can Buying a Car Be a Good Investment?
As you may already know, cars depreciate in value over time. However, does this immediately mean that buying a car is a bad investment? 🤔 The answer to this question depends a great deal on how much you use your car in everyday life. Even if the car’s value diminishes over the years, if you’ve driven it to work or gone on road trips with it, then you know the convenience that comes with having your own car. And that, by itself alone, makes your purchase worthwhile.
Should I Buy a New Car or a Used One?
It can be a tough choice whether to buy a brand new car or go for a used one. Getting a new car seems more exciting because you get to be the first owner, you can have all the specs you want, the colour you prefer, and who can resist that new car smell, right? However, all these things mean you need to pay a lot more compared to buying a used car. But a secondhand vehicle has its own set of advantages, too. Let’s look at the pros and cons of each.
Pros of Buying a Brand New Car
You’re the First One to Own It! I
t’s a different feeling when you know you’re the first one to use a car. You don’t have to worry about the condition of the vehicle because it’s never been driven on long journeys. You don’t even have to think about the MOT until the car’s third year. The car has no secrets because no one else has ever used it so you don’t have to wonder about how careless the previous owner might have been.
Full Manufacturer Warranty
All new cars are covered with a full manufacturer warranty starting from the date it was registered. If the car has any issues, you can use this warranty to take care of it. A used car may have already used up its manufacturer warranty or only have a few remaining months on the cover. A brand new car gives you peace of mind knowing that you won’t have to spend on repairs in case of any problems with the vehicle.
You Get to Choose the Spec
When you imagine your dream car, you probably think about every detail of it – from the wheels to the colour of the car. Buying a brand new car allows you to make that dream a reality because you can spec it however way you want it. You get to add any accessories you want to the vehicle. Of course, you have to prepare your budget for this. Specs are limited if you choose to buy a secondhand car.
Cons of a Brand New Vehicle
Expect to Pay More!
Of course, brand new cars are going to be more expensive than their used counterparts. Apart from that, you’re going to have to be ready for the depreciation on the car’s value as soon as you drive it home. Secondhand vehicles have already lost some of their value so when you buy one, you won’t be losing as much money compared to buying a brand new car.
Higher Insurance Premiums
Depending on the model you’ve chosen, you might have to pay higher insurance premiums. Cars of a higher value are more expensive to insure. Replacement parts can be costly, that’s why you can expect that the insurance premiums will be expensive as well.
Why Buy a Used Car?
It’s Significantly Cheaper.
You can save thousands of pounds just by choosing a secondhand car over its brand new counterpart. If you want to save even more money, select an older model because those have depreciated a lot already. At this point, it’s worth asking yourself if you’d rather spend more just to be the first owner or save your money by buying a used car in great condition. You could use the money you’ve saved for a road trip across Europe if you want.
Get Even Better Specs
Yes, you might not be able to get all the specs you want if you buy a used car. However, an advantage is you can enjoy even better specs on a secondhand vehicle without paying more. Some cars already have leather seats, advanced infotainment systems, and other accessories that are not readily available in a brand new car. You’ll get more value out of your money if you buy a secondhand car.
No Need to Wait
A used car is one you can buy and drive home immediately. With a brand new vehicle, you could wait for weeks, even months, just to get all your specs together. With a secondhand car, you look at it, check all parts, take it for a test drive, and decide if you’re in love with it! And if all boxes are ticked, then get the paperwork done and you’re all set!
If you’re to look at cars as an investment, then you might want to learn more about luxury cars. Those are the ones that can be considered as “investments.” Why not check out this article on the top 5 cars likely to increase in value in 2023.
Whilst your car may lose value over time, if you take care of it well and sell it or trade it at the right time, then you could still get money out of it to put into your next vehicle. When it comes to the usual everyday cars, it’s best to look at it not as an investment but as something of a necessity that allows you tremendous convenience and enjoyment.