Can you afford a brand new vehicle? Here are a few Easy Tools that will help.
Twenty or thirty years ago the majority of people in the UK would have answered yes to this question, but today an overwhelming number of British residents wouldn’t even consider buying a brand new car. Because of the rapid advancements in automotive technology and the high standards to which cars are designed and tested these days, they cost considerably more to buy brand new than they would have a few decades ago. To put prices into perspective you can buy a used Ferrari F430 for as little as £30,000 and pay more than this for a new Volkswagen Golf!
As a result of the way in which new car prices have risen, many people now look at other options such as leasing. Leasing enables you to own a brand new vehicle without a huge cost up front. You will have a fixed term, usually a period of around 3 years, in which to make monthly payments and at the end of the term there will be an option to either pay the difference and purchase the car outright or start a new lease with a brand new car and continue with your monthly payments.
Paying for a new car in this way usually represents a far more affordable option for the majority of motorists. For example BMW 6 Series Convertible leasing deals start at around £500 a month, whereas you’d be looking at anything between £50,000 and £75,000 to buy a new one.
For similar reasons, the used car market has grown enormously and is now the first port of call for most people looking to get themselves a motor. Vehicles depreciate quickest in their first years, so as soon as you buy a new car you’re losing money at an alarming rate. Take a family car such as the C6 – you will be looking at between £30,000 and £40,000 for a new one, whereas a used Citroen C6 in good condition and only a few years old could cost you well under £10,000. When it comes to these kind of savings the decision is a simple one for many drivers.
Additionally, buying a used car allows you to look at a broader range of vehicles and effectively get yourself a better one – even a city car such as the Toyota Aygo will cost around £10,000 to buy new. For the same price you could buy a used Alfa Romeo Mito or a second hand Lexus CT. Providing you don’t have your heart set on the comforts of a brand new model you’ll have far more vehicles in your price range.