NEW CAR, OR PREVIOUSLY OWNED? …what’s the better deal?
NEW CAR, OR PREVIOUSLY OWNED? …what’s the better deal?
by Stephen Murphy
If you are on the lookout for a new car, with a shiny new registration for all the world to see, is it really worth it, or should you go for a second-hand vehicle and save thousands of pounds on a well-maintained motor?
Dealerships and manufacturers would have you believe that buying new is the way forward, but does anyone really own a new car these days anyway?
When you break it down, over 90% of new car purchases are made via finance, with the majority being switched out within a three-year period. Of course, the car should be in fantastic condition, fit for a showroom, in order to get the best value when returned.
So what does this mean to the next owner? When one buys a car with the intention of upgrading, it means that the vehicle in question has been serviced, maintained, and cared for more thoroughly than if it were owned outright, and the mileage is likely to be minimal for optimal value. Clock watching is a biggy when it comes to those who have bought with annual mileage limitations.
Overall, the next buyer will save a substantial amount of money on a car that has been meticulously maintained by the previous owner and the dealership.
Also, all new cars come with a few snags and glitches along the way – it’s a rare occasion to see a new car hit the market without a million reviews with many experts, and many so-called experts, highlighting an array of faults or could-be-betters.
Whatever model you choose, you already know the pros and cons and whether it is worth the investment. After all, every car has its shortcomings—or perhaps that is just a cynical perspective.
Why buy a new car? I asked Andrew Furness, the Jeremy Clarkson of West Cumbria and owner of Walkmill Motors. Andrew said, “The main reason people opt for a brand new car is for affordability and reassurance. For instance, when there is a great PCP option in place which fits a specific budget and having the reassurance of things being sorted without the financial constraints should things go wrong makes it the right decision for many.”
Why buy second hand? “Well,” said Andrew, “buying something that has true value makes the decision easy, the depreciation on a brand new car makes for a massive saving and in many cases, you still get the warranties giving you peace of mind. Also, when buying new, within the initial price is VAT and Dealership margins that they have to make to stay profitable.
“For instance, a BMW X5 is say, £100K brand new and within that is the dealer margin and VAT, add in the depreciation over the timescale of a year, this means that that car which was £100K on the forecourt has lost up to 35% percent of its value – so within a timescale of a year, there could potentially be a saving £35,000”
I think the biggest take away I have found is when buying second hand you get the true value of that particular car that you are looking at. But it’s all horses for courses, as Andrew initially stated, if you want set budgets and reassurance, PCP seems to be popular, and if you want to save a small fortune on a car that you actually own, then second hand wins hands down.
If you have a particular car that you want, model, budget and mileage – head to Walkmill Motors and let them find your next car; www.walkmillmotors.com
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