When Should You Just Buy A Cheap Car Vs Going With A Higher End?

Buying a car is an investment, maintaining it has a cost. To know if you are doing a good deal, several criteria are to remember: the purchase price of the vehicle, the cost of its use (maintenance, fuel and insurance) and its resale value. A very recent occasion can be a good alternative!

The purchase price of the car: advantage to the used vehicle

The main asset of a used car is its price. A new car is expensive and haircuts very quickly. Since the purchase is often financed by a consumer credit, the financial charges must be added to your budget.

The second-hand market offers high-end, well-equipped models, while at equivalent budget, in nine, you should be satisfied with a basic model.

But beware! A second-hand car can also have unpleasant surprises … The price advantage disappear in repair costs. It is better to buy a used car from a professional who will have it revised and refurbished before the sale. So, it will be better to choose a used car for sale in well condition.

The costs of using a car

To calculate your car budget, excluding purchase price, you have to take into account 3 criteria: the cost of maintenance, the consumption and the amount of car insurance.

The cost of maintenance: advantage to the new car

A used vehicle always has a higher maintenance cost than a new model. Mechanical parts have a limited life. Change the timing belt, shock absorbers, tires, etc. it’s expensive.

In addition to the scheduled replacement of certain parts, there are also early changes resulting from a faulty maintenance or misbehavior.

a new car is covered by the manufacturer’s warranty . The cost of revisions is known as soon as the vehicle is purchased.

Fuel consumption: benefit to the new car

A new vehicle is less greedy than an old car. If it is polluting, an annual tax is also added to your car budget.

Auto insurance: advantage to the used car

Insuring a new car is more expensive than a used model. If an all-risk cover is not necessarily justified for a used car, it is necessary for a new vehicle.

The resale of the vehicle: equality!

At mileage and age equivalent, a new car purchased will sell more and more quickly. Buyers prefer it to a second-hand vehicle whose history lacks visibility. Often, to sell your car, you have to inspire confidence.

Also think that a used car depreciates much less quickly than a new car. When reselling, the motorist can, without much financial effort, buy another car. In contrast, a new car loses 75% of its value in 5 years. To acquire another one, it will often be necessary to subscribe a new consumer credit.

The alternative: the recent occasion

If you hesitate between these two options, the choice of a very recent used car is a good compromise. This cheaper vehicle than the new model is immediately available and it still benefits from the manufacturer’s warranty.

Recent opportunities are well-maintained cars since they are intended to be resold in concession. Most manufacturers also offer service packages to car buyers: extended warranty, maintenance, etc.