Buying a New Car
Buying a new car can be costly, so it’s important to ensure that you’re making the right decision before you splash out on a new car.
Do You Really Need a Brand New Car
One of the biggest factors affecting the value of your car is depreciation. A brand new car’s value drops as soon as it leaves the garage for the first time. It may be worth weighing up whether the benefits of buying a new car are worth the extra costs compared to buying a three-year-old car, for example. According to motorcheck.ie, a Volkswagen Golf loses up to 40% of its value in the first three years.
When Should You Buy a New Car?
The date that you purchase a new car can have an impact on the price. Car dealers are often paid bonuses at the end of each quarter based on their sales, so you’re more likely to negotiate a better deal at the end of each quarter when there is added pressure for them to reach targets. There’s also pressure on dealers to sell cars before the second half of the year so if you can, don’t buy your car on the 1st of January.
What Other Costs Should You Factor In?
It’s not just the cost of your car that you need to think about. If you’re planning on keeping the car for a while, ongoing costs need to be factored in also.
Depending on how you’re planning on using your car, you need to decide between diesel or petrol engines. The cost of fuel and maintenance of your car may fluctuate depending on your needs. Diesel cars for example need to be driving on motorways frequently to keep the engine running smoothly, so if you’re planning on just driving around a city, you may have to fork out more for services.
It’s also worth comparing the difference in CO2 emissions between car models. This affects your impact on the environment and the amount of road tax that you’ll end up paying.
What Purpose Do You Need the Car For?
If you’re planning on investing money into a new car, you need to think about what you really need from your car. Children might be the last thing on your mind at the moment, but this could change within the next five years. So if you’re planning on keeping the car for a while, take a little time to think about your future requirements too.