How new cars could be up to 25% cheaper to run
Buying a new car can be a daunting procedure for many. It’s a big purchase, after all!
From choosing the make and model to deciding on the size and extras, there are a number of factors to take into consideration. Then there’s the decision of whether to buy new or used.
Most of us would go to second-hand for a budget buy, but is a new car actually beneficial to the purse strings? It might just be. Today, the Citrus team look a little closer.
New or used?
Those of you deliberating between a new and used vehicle may be interested to learn that new cars are in fact up to 25% cheaper to run than used vehicles!The ongoing maintenance and operation costs of a car can be significant, and often make up most of the expense incurred. That 25% suddenly became a big deal indeed.
Asides from the lower running costs, newer vehicles are also less costly to insure. All of these savings make a massive difference when added up over the year, many of which will override the initial purchase price. If you have the money available, it’s worth a thought.
Vehicles such as the Nissan Qashqai, the Volkswagen Golf, the BMW 3 Series, the Ford Fiesta and the Vauxhall Astra (all of which are new releases) have shown to provide motorists with considerable savings when it comes to road tax, petrol expenses, insurance and MOT (they also happen to be fantastic vehicles that are fun to drive).
When compared to their more dated equivalents, the savings on the newer vehicles are much higher.
You’ll also benefit from the improved safety of new vehicles, both from theft and for accidents on the road. That’s a big deal if you have family and loved ones sharing rides with you often.
Before you buy
Buying a car is a huge commitment! Because of this, it’s important to ensure you make the right choice. Newer vehicles will always boast a higher price tag initially, but it’s certainly worth looking at their overall running costs in the long-term. Lower running costs and annual savings will generally offset headline prices.
Certain models even offer the likes of ‘free road tax for the first year’ schemes. Due to these factors alone, it’s certainly worth doing a comparison, as this will help you to determine what you can afford in the long run.
Car loans could also help to make the costs of a car more affordable if split into manageable monthly payments. If you’re considering this, be sure to have an existing budget already in place – don’t fall into the trap of taking a lease plan on impulse. It’ll be with you for years.
Don’t be fooled
Buying an inexpensive second-hand car may seem like a good idea at the time. However, older models tend to have a tendency to fall apart or break down!
Both labour fees and parts can quickly mount up if a problem does occur, which can make what was initially thought of as a bargain turns into an expensive purchase.
This comes down to your financial situation overall, and it reinforces just how important it is to have savings available.
If you are looking at a new car and have money available to afford the higher up-front price of a new car, you’ll potentially save money in the long-term via reduced costs.
That kind of financial flexibility makes a massive difference over time. If you take one thing away from this blog, it should be that money equals freedom: freedom to make better purchases, and freedom from the nasty consequences of unexpected bills and fees.
Can we help you?
We hope you found today’s Citrus blog useful! We’re sincere in our efforts to provide interesting articles that help you live a better life where money is concerned.