New vs Old Car – Which is the Better Investment?

When it comes to buying a new car, the benefits of a new car are instantly understood. That evocative new car smell, the cachet of being seen driving the latest model with the latest extras and special features. However, there are many advantages to choosing a second-hand car, from environmental to reliability to financial. The financial reasons for choosing to invest in a second-hand car alone are enough to tip the decision for many people. Let us take a look at some of these.

Depreciation

It is a well-known factoid – and not an entirely true one – that a new car halves in value the moment you drive it off the car lot. A new car doesn’t instantly lose half of its value, but it is true that the value of a car drops more during the first year of its life than it will at any other time. This can mean – if one is pedantic about such things – that choosing to buy a car that is at least one year old is a more tempting investment than a brand new one.

Less Likelihood of Expensive Repairs

If there is going to be a time when a car is more likely to break down during the first five years of its life it is during the first six months. This is when manufacturing issues, weaknesses or flaws in the raw materials and any assembly errors will present themselves. Sometimes these will trigger a recall, if the problems are egregious and widespread, at other times buyers will have to submit their cars for repair or replacement – a state of affairs that can cost drivers money as they lose work, need to fund public transport for a time, or get used to a courtesy car – or the driver must pursue a solo path, trying to find out what the problem is and who is responsible for paying for those repairs. But by the time a car is being sold as a used vehicle, any of these quirks and foibles will have been fixed, or the car sold for parts rather than sold as running transportation.

Lower Insurance and Taxes

And the gifts bestowed by the used car keep on coming. A lower cost price means that your insurance premiums and taxes will be lower too, and this will continue over the life of the car. If you keep the car for around five years, the money saved in stealthy ways like this mount up to a considerable sum – perhaps enough that you can choose an even nicer second-hand model for your next car!

It can seem that buying a new car gets you the whole life of the car to earn out the purchase price – but when you take into account the costs and issues like running the car in, paying all the running costs and even changes in fashion, getting a second-hand or older model car can be the better option for your bank balance. If you feel the inclination to check out or even buy pre-loved cars then we will recommend using KAP Motors. You can buy used cars in Brighton at KAP Motors with 100% warranties and easy instalment plans. Check them out today!