Buying New vs Buying Used
There are many pros and cons to take in to consideration when buying a prestige or performance car.
Once you’ve decided on the type of model you would like to purchase, quite often the decision of whether to buy brand new or to opt for a second hand vehicle can also come in to play. Oracle Finance is always on hand to offer impartial advice on the purchase of your next luxury car and we’ve compiled a few tips to help you on the way.
Factors to consider when buying your next car
1. Depreciation – most new cars depreciate in value immediately after being bought
2. Costs – a new car may come with higher insurance premiums whereas a used car may incur slightly higher costs for maintenance and repair
3. Warranties – a new car will have a manufacturers warranty, usually for 3 years, whereas buying a used vehicle may see the need to purchase a warranty separately if the initial 3 years has passed
4. Reliability – no car can be guaranteed to be 100% reliable but when buying used you will need to take in to account the possibility of previous problems
5. History – again, there are never any guarantees but with new at least you know it’s only you that has owned the vehicle.
Advantages of buying a new car
• Investing in a new car obviously offers the most reliability.
• A new car will have had a pre-delivery inspection by the dealer, a warranty, free or discounted servicing and no MOT to pay for in its first three years.
• There are also the benefits of the best fuel economy, lower running costs and a decent residual value after its first few years of use.
Disadvantages of buying a new car
• Purchasing a new car will inevitably be more expensive and could depreciate up to 40% in value over 3 years.
• Insurance for new cars is understandably higher than used
• Special edition and much sought after models will maintain a higher re-sale value .
Advantages of buying a used car
• Buying a well-loved and maintained vehicle second hand can often mean you get the model you want or a higher spec than you would on a new version
• Cheaper car insurance may apply and the running costs can be lower if the car is well looked after.
Disadvantages of buying a used car
• There are always risks buying a used car, especially taking in to account potential reliability and performance concerns.
• It’s also good to run a vehicle check to thoroughly ensure it has not been previously stolen, in a crash or sold by a bogus owner.
Whilst the luxury car market differs from the vehicles of a lesser value it’s always good to take time and consider what you want out of your new car. Is it performance, luxury, reliability, residual value or something else?
By opting for vehicle finance with Oracle you are able to offset some of the financial commitments over a longer period of time and in turn you can often enjoy driving a higher spec vehicle than you would if you were to purchase outright.
Contact Oracle today to discuss the variety of low rate finance deals we offer on any new or used vehicle purchased from a Uk dealership.