When you are in the process of purchasing your next vehicle, it can be tempting to look for an affordable model that will fit your budget. A brand new car often seems like an expensive investment that many car-buyers are unwilling to make. Indeed, there is no denying that new cars lose approximately 40% of their value within the first year. However, it doesn’t mean that a second-hand vehicle is going to be budget-friendly.
If you are looking for the best return on your investment, a used car will not be affected by the depreciation in the same way as a new vehicle. But if you are looking for an investment that keeps your budget strong and stable, a second-hand car could be a false economy. Here’s why you need to think twice about your car purchase strategy.
Second-hand cars need more repair works
When you buy a brand new vehicle, you expect everything to be in working order. A second-hand car, even if it’s been looked after, is more likely to develop faults due to its age. Some repair work is unavoidable and determined by the car mileage. Some parts can get worn out over time. It’s the natural course of every vehicle, so, of course, a second-hand car will cost you more to maintain than a brand new one. That’s why most car owners tend to perform DIY fixes at home, such as replacing an old battery or changing the oil. Admittedly, you can’t do everything safely at home, but your DIY care could save you a lot of money in the long term.
On the other hand, a new vehicle is under the manufacturer’s warranty. A lot of replacement and repair jobs will be covered, which means they are virtually free.
You get outdated tech at a bargain cost
Car technology changes rapidly. A second-hand vehicle with a fantastic in-built audio system could feel outdated within a few years. Unfortunately, car tech from a previous generation could become unusable. It is unlikely to connect with the latest smartphone models. It could also be tricky to update, so that your in-built sat nav may not be able to display the latest road changes. On the one hand, you can access technology at a lower cost. But on the other hand, it may not be of any use. Instead, it can be more valuable to look on the dealer’s company website for financing options that would make a new car affordable.
You’ve got to pay for your MOT
During the first lockdown, the government issued MOT exemption to keep car road-legal during the pandemic crisis. As a result, it is estimated that over 1 million cars have been driving on the road even though they would have failed their MOT. Many have since performed emergency repairs. But, lockdown has taken its toll on the household budget, encouraging low-cost last-minute fixes to pass the MOT. This approach means that many more vehicles will struggle to remain road-worthy. Car owners of the following car makes who have struggled with their 2020 MOT are more likely to hit a low pass rate: Renault Megane, Renault Clio, Citroen DS3, Volvo V40, and Vauxhall Insignia.
New cars may seem like a significant cost. However, they are a smart investment that can keep your expenses low when it comes to road safety, in-built tech, and maintenance costs. Ask yourself: what is the hidden cost of a cheap, used vehicle?