Have you ever noticed that when it comes to buying your next car, people are always banging on about why you need to buy a used car and that purchasing a brand new car is for losers? Well, yes you might be a “loser” in the respect that your car loses depreciation, perhaps more so than buying used cars that are several years ago, but sometimes the benefits of buying a brand new car far outweigh the cons!
For example, newer cars are significantly more likely to have far fewer issues with reliability or maintenance. That is one headache you don’t want to worry about when you’ve got your family in the car with you, and don’t want to be stuck on the side of the road because yet another thing has “gone bang” on your engine again!
When I started driving, the first few cars that I owned were used and spent more time being repaired than on the road! This wasn’t me just buying lemons, by the way, as the cars had a well-documented service history and, for the most part, were looked after by their previous owners.
It was more down to wear and tear of various mechanical components due to their age, and when repair costs started being quoted at more than the value of the cars themselves, I knew that it was time to get rid of them and trade up for newer vehicles.
Back in those days I probably could have scraped together enough money to finance a brand new car each month but the insurance would have been astronomical for a new, young driver like myself.
Today, however, is a different story, and I can now afford to get all sorts of weird and wonderful brand new cars without paying much for insurance, considering that I am now older and have a lot of driving experience under my belt, so to speak.
You might be reading this blog post and thinking to yourself that there is no way on Earth that you could afford to buy a brand new car, so I will let you in on a little secret: you can! Here’s how:
Raise as much cash as you can
Unless you have won the lottery or have been handed a big inheritance from someone, you will have to borrow the money to finance your brand new car. According to GK Group, the trick is to put down as much money as possible to keep your monthly instalments lower.
Sell your existing car beforehand, auction off any junk in your home on eBay, even do a bit of moonlighting next to your day job, whatever it takes to raise the capital (as long as it’s legal, of course)!
Check out different car dealerships
It’s a well-known fact that main car dealerships are just franchised operations, so you should be checking out what deals each one has on brand new cars. Many dealerships often pre-register brand new cars, and they are often willing to reduce the price of these cars by hundreds (and sometimes, thousands!) yet to all intents and purposes these cars are still brand new!
For the first 12 months, cars can take a depreciation hit of up to 40%, sometimes more, yet if you buy a car that’s a year old and has say 5,000 miles on the clock, you will make massive savings yet still be able to benefit from any remaining warranty, and the car will still be new enough to be reliable.