Collaborative Post¦ Apart from your home, the next significant investment you’ll most likely ever make is purchasing your dream car. Who wouldn’t want to own a nice car? But if you manage your finances responsibly, you will be reluctant to buy a new vehicle.
Image via Adobe Stock by Olivier Le Moal
While there are overpriced used luxury cars, it’s not just the price that makes a new vehicle an unnecessary expense. There are other associated fees, loss in value, and subsequent costs. All these costs can add up to thousands of pounds within just the first few years after purchasing your new car. This can be especially bad if you end up with negative equity in your car loan.
The best alternative to a new car is a slightly-used car that has been around for less than two years and with less than 50,000 kilometers on it. Such a car can help you save more and without compromising on quality.
Purchasing a new car is more expensive than buying a used one. Unless you opt to lease your new car, the initial cost will be high. Additionally, most financial institutions will require that you first make a down payment of a minimum of 10 percent for your new car loan. If you decide to pay less upfront, you will make higher monthly payments. Instead of taking a loan to purchase a new car, you may want to apply for bad credit car finance to purchase a luxury used car. Another factor you should consider in favor of used cars is they don’t depreciate in value as quickly as new cars.
Don’t be surprised if you find a used car that still has part of its original warranty. While you can still create a new warranty for other used cars, an extended warranty from the manufacturer on your used car can qualify your car to be inspected and repaired by trained technicians and with quality parts in a speedy manner. What’s more, you can also utilize a portion of the money you save from not purchasing a new car to get a new warranty that covers everything in your car until 100,000 kilometers or more.
A certified pre-owned car will give you peace of mind that you’re getting quality. A pre-owned car that has been thoroughly inspected by the manufacturer or an organization with certifying authority will be of high quality. In most cases, certified used cars would have an extended warranty and financing, among other benefits.
According to The Guardian, a quarter of the carbon a car uses during its entire life-cycle occurs during the manufacturing process and shipping. By buying a used car, you will help reduce the carbon dioxide released into the environment. Additionally, used cars also have less impact on the environment than modern hybrid cars. Modern hybrid cars use lead-acid, lithium-ion, or nickel-metal hydride batteries, which impact the environment negatively than a used car because of the waste these batteries and acids leave behind.
A new car will smell great, but is scent enough to influence your buying decision? Owning a car has several benefits, and by considering the total cost of purchasing a new car, you will thank yourself later for buying a certified pre-used car.
Disclosure: This is a collaborative post.
Welcome to my blog! I'm Laura, a 28 year old first time mum. I live in Kent with my high school sweetheart husband Dave, and our daughter Autumn. When she came into the world in September 2016, we knew that life would never be the same again!
I write about my experiences of parenting, as well as my plethora of interests including fashion, beauty, cars, weddings and the home.
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