Unhealthy And Expensive - The Downward Spiral Of New Car Ownership
Depreciation is one of those ugly words we all hate. Not only is it often difficult to calculate, but it is a word that applies itself to items we buy within seconds of the purchase. Boats, furniture, and computers are just some of the things we know we’ll probably never make a profit from. But it is the car that can cause the most despair and frustration.
Most of us buy our new vehicles using a finance agreement. This is usually the preferred product partner of the dealership from which we are purchasing. Chances are the interest rate isn’t great. That means the total cost of the car will be substantially higher than the RRP we just paid. Yet the car will be worth less when we drive it away than that.
Then, of course, there are the insurance costs, the fuel costs, the servicing and maintenance costs. There is the time spent in traffic, and the money spent on parking. Have you ever worked out the total cost of car ownership? Add the lost cash from buying new to the mix, and you might weep! Don’t forget the proposed tax levies for high polluting vehicles that may or may not affect us.
All that time sitting in the car isn’t good for our health or our wallets. But would you be prepared to give up your car altogether? Not many of us would. The convenience and privacy it offers is unrivalled. And if we didn’t drive to the gym, we probably wouldn’t ever work out! Perhaps you would consider purchasing a lower priced used vehicle? The pain of depreciation might not be quite as high, and smaller vehicles usually mean smaller running costs too.
Financing a used car is often a little easier too. You might even be in a position to buy it outright if you’ve been saving for a while. There are, of course, used auto loans online to choose from as well. Buying a pre-loved vehicle may also give you the opportunity to drive a model of car that you simply wouldn’t have access to brand new. It could widen the range of available vehicles and choice.
Buying a used car also gives you access to the vehicle history. Not only will you know the mileage that the vehicle has already done, but you’ll see from the service history how well it has been cared for. You might also find out if there was any significant work done to the vehicle. Most importantly, you will be able to determine from collated data over time if the vehicle is economical and safe. Internet customer reviews can say a lot about a vehicle, but it takes time to see a wide range of views and experience reports.
Of course, if you’re looking for the latest safety innovations, technologies and designs, new might be the only way forward. It’s up to you if you would sacrifice those ideals. You might want to consider how quickly those tantalizing features could be superseded. What is the cost of changing your new vehicle after only a short time?
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