‘That’s absolute madness. Stay quiet you lunatic’ you may say. But rest assured this may not be the case.
Research suggests that a brand new car to work out cheaper in the long run rather than buying an old car and have the contents of your wallet steadily eaten away by the running costs of older models. 25% percent cheaper so it is reckoned.
5 different models of car were compared to their 5 year old predecessors and a conclusion was reached based on factors such as fuel costs, car tax, insurance and MOT. These cars were the Nissan Qashqai, VW Golf, BMW 3 Series, Ford Fiesta and the Vauxhall Astra. For each model they had the same conclusion. Despite the higher value of the new model, it was significantly cheaper to run than the older cars so would therefore save you money overall.
Consumer finance expert, Dan Plant said that it was mainly due to manufacturers pushing for safer, more economic cars; ‘free tax for the first year’ schemes as well as potential dealer deals. He points out that the higher headline price usually turns people off, but the long term financial ramifications of getting a new one often outweigh the immediate downside.
Plus that new car smell and decent warranty – why wouldn’t you want a new car?
As with anything, he still recommends comparing prices to see what you can afford on your budget before taking the plunge for your dream machine.
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