New, Used or Lease?
So you’re tired of your current wheels, you want a change, spruce things up, spice up your life, looking for deals on wheels.
But do you want a new, used or lease deal?
Well we’ve outlined some need to know facts about each option available to you.
– Maybe the first thing that comes to mind when getting a new car is to actually buy a brand new car.
With a new car you know what you’re getting, it’s going to be fresh off the press, it will have that beloved new car smell, and you know that nothing’s going to be faulty with it, or at least if it is then you’ve got the manufacturer’s warranty and you’re not in danger of paying big bills if anything goes wrong. Of course the other advantage is that you know you are the only one who will have owned the car.
However, new cars don’t come cheap. You will have to pay full price for them and dealers will not offer much in the way of discounts. Moreover, as soon as you buy the car it loses value as it’s not new anymore. So if you buy a car new for £20,000, don’t expect to sell it for that price a few years down the line!
– The beauty of buying a used car is that you know you are going to get value for money 9 times out of 10.
Used cars will obviously cost considerably less than new ones, but you are at more risk of things going wrong. You have no idea how the previous owner treated the car or whether any of the components will need replacing any time soon.
What you will inevitably get with a used car is good value and most likely good residual values, for example I bought a second hand Audi A7 which was only barely used in that there was only a few thousand miles on the clock, yet just because this technically meant the car was second hand, it meant I saved over £5000.
– A lease deal might be an option you should start considering if you haven’t been already. A lease deal opens more options in terms of the cars you can drive if you are on a budget.
Leasing allows you to pay a set monthly fee which covers the cost of the car and insurance, so instead of paying £30,000 up front for a new car, you pay £500 a month for example for the term of the loan. This allows you to afford cars that you might previously not have been able to.
The disadvantage of leasing, however, is that at the end of the term you have to return the car. You will have nothing to show for your money at the end of the deal, you are basically paying just to drive someone else’s car.