Short of winning the lottery, I won’t be buying a new car in 2010. Let me further explain – what I mean by that is a brand new car with 0 miles on the clock. Simply put, new cars are just too expensive. Even basic models, such as the Kia Picanto 1.1 costs £7,500.
That, I’m sure you’ll agree, is a significant investment for something that is so rock bottom (granted, it does the job just fine but it’s incredibly basic) that it could have come from the 1970’s. Then there’s depreciation, which means that three years down the line your motor will likely be worth may about half (give or take) what you paid new. Not an easy pill to swallow.
Of course, the ‘gold’ if you like is probably in the buying of a ‘nearly new’ car. Mechanically proven, probably still in warranty but ran in, this is where some trouble free motoring is waiting for you. A decent model may have as little as 20,000 on the clock. That’s where the market forces work in your favour.
If you do look to buy this year, make sure to get something that is mechanically 100% and is a perfect match for your lifestyle. There’s no use jumping in with both feet to buy a new sports car if you have 3 kids, a dog and the kitchen sink to lug about on a regular basis.
Avoiding brand new and stepping into the world of the used motor opens up some (to my mind) far more interesting choices. I found a BMW M3 on a 03 plate with 80,000 on the clock for £12,000. Ok, brand new it isn’t, but we’re talking a car that was on list for £30,000+. It’s also a fantastic drive.
The bottom line is, if you do have the money for a brand new car – that’s great. Just bear in mind that the used market can not only provide bargains but also may have a motor for you that you otherwise believed to be unobtainable. As for me? Well, I do like the look of a used Alfa Romeo Brera I found for £11,000…
UKCarExchange says
March 15, 2010 at 11:22 amTotally agree. We’ve just posted an article on our blog about how often a vehicles depreciation is overlooked when buying another car. Car buyers tend to look at the make/model, the running costs or the colour. Depreciation tends to come in to play when it’s time to trade the car in. We’ve also included in the post a Top 10 least depreciating cars of 2009 if anyone is interested: http://www.ukcarexchangeblog.com/uncategorized/top-10-least-depreciating-cars-in-2009/
Thanks
FinanceAcar says
April 9, 2010 at 3:20 pmI agree that the used car markets provides opportunities and that depreciation is one of the most important things when looking at buying a new car, but I would argue that there are ways to finance a new car that can limit the exposure and the initial outlay. Car Leasing is a good way to limit monthly payments as you only pay for the usage of the car and part of the depreciation, which enables you to afford a better car for lower monthly payments. Although you end up not owning the asset, it makes it easier to change car every few years without paying the full price outright. You can also get some great special offers on leasing where the price of the car is subsidised by the manufacturer or the leasing companies. We have written more information on the advantages of car leasing at http://blog.financeacar.co.uk
SBT Japan says
September 9, 2010 at 6:42 amHi Mr. Butterscoth, definitely I agree with you. Buying a new car for this year is not a good idea specially if you still have a well maintained car and some responsibilities, though there are people who can afford to buy new one I still go with being practical. If ever I wanted to change my car, buying a used car is a good choice for me. It’s not just because of the discounts you can have but also those cars are preowned and mostly they are just 6 months or just a year old when they were sold.