If you are looking for a great deal on a new car, you may be tempted by the big promotions and sales that main agent dealers will be having around the time of the new number plate.
There will be television commercials, magazine adverts, maybe even radio jingles! All of them announcing the great prices and deals available this month.
Each new number plate brings a surge in sales across the car industry. But are you really going to get the best deal by buying a brand new car? Or can you save money buying a nearly new car?
Depreciation – The curse of the brand new car
When you buy a brand new car, you will be surprised to see just how quickly you lose value in your car. The Money Advice Service estimates that you can lose between 15% to 35% of a car’s value in the first year alone. By the end of the third year, your car could be worth up to 50% less than what you originally paid.
So why is this important? Well, answer this. If you paid £10,000 for anything, would you expect it to lose £3,000 in value after the first year? A new car is not a cheap purchase. Normally costing anything from £8,000 upwards and often over £10,000, spending this amount of money is not a small decision. So if you are losing a large percentage in just a few years, you could have wasted a lot of money.
It’s even worse if you are planning to sell the car if you are planning to change your car within a few years. You can lose a fortune on the part exchange value of car.
What about nearly new and used cars?
Nearly new and used cars still suffer from depreciation. However, the amount of money you will lose based on what you pay for a car is greatly reduced.
In fact, in this way you are taking advantage of depreciation, using the drop in value of a new car as a way of getting a much cheaper deal.
By buying a car that is nearly new, you will still get all the benefits of a new car – the latest model, modern safety and in-car entertainment technology, perhaps even still under manufacturer’s warranty. You will also not lose as much money from depreciation.
The same can be said for used cars (2 years and older). If you complete a thorough vehicle search, you can find many used cars in decent condition with lots of the accessories and add-ons you would find on a new car.
Again, you will get most of the benefits of a new car without losing so much money.
Toyota Aventis. Image credit Toyota UK @ Flickr.
Take advantage of great car finance deals
The good news is that nearly new and used car dealerships will be competing with the main dealerships for customers, so you can find a great car finance deal this month.
Car finance is a great way to spread the cost of the car across manageable monthly payments and Creditplus have some great car deals available.
Competitive rates of APR and thousands of cars to choose from make it a great time to select car finance as the way to fund your new vehicle.
Creditplus have some great deals available on Ford Fiestas, Vauxhall Corsas, Nissan Qashqais, BMW 3 Series, and more. Visit the Creditplus blog and find out how you can find a fantastic car deal.
Creditplus is one of the UK’s leading car finance comparison services. Having been operating for 12 years, ethical lending and putting our customers first has led to us being the UK’s most trusted car finance provider. Let us find, fund and deliver your new car with our simple and straightforward car finance service.
This post is written and sponsored by CreditPlus
Main image credit: Bill Herndon @ Flickr.