New or second hand?

This subject is up for a good debate as there are a number of pros and cons on both sides of this story.

Buying brand new - off the floor

Ahhh the fragrance experience of getting into the brand new car pit is awesome…

New cars come with a new warranty and generally with motor service plans built into the price for anything from 3 to 5 years- so this is good- helps with the budget-cash flow in the coming years after this purchase. You know what you are getting- a brand new baby with no history of unknown problems, like past accidents or other.

One negative is the fast depreciation of a new car- value drops by at least 10% as you drive off the floor. Depending on how you finance a new car purchase; quicker depreciation means that you have to hold onto your car for a longer time – so generally have to pay in more when you look to trade in.

The used car purchase …

So if you can find a low mileage- demo model or you know that sweet older lady who has had that car for years and only driven to her local supermarket-church on Sunday or to bowls and back- then you could have a winner here, as these kind of buys generally allow for lower depreciation and no problem issues with the same car after the purchase.

But beware of buying that used car that looks so cool with higher mileage that the super car salesman talks you into…could end up buying a problem child with massive under the bonnet or under the car chassis problem that you just can’t see at the time of falling in love with that model.

One my best buys has been that late model car- a well known brand with a backed up warranty from a reputable dealer….

Lots to think about before you make that final purchase…do that research in line with your affordability and you won’t go wrong.

Best of luck, Brydal