About a year ago, I decided to buy a new car after doing some “complex” calculations – I decided to go for the 2014 Ford Focus. By that time, I only had cars that were about 5-10 years old, such a Skoda Oktavia or a Toyota Prius. However, I never quite experienced that “new car smell” that we all love, and it was always in my plan to actually drive a modern car – feeling secure, comfy and stylish at the same time.
As a result, I ended up buying a new car – on finance – because it seemed to be the most cost-effective solution looking on a long term. Here are some of the advantages that convinced me to do it:
Warranty for up to 5 years, depending on the model you choose. No costs on fixing or replacing any car parts.
The ability to choose the exact colors, options and accessories you truly wanted – not paying for something you are not using.
Specialist companies who offer finance to those who have a bad credit history, such as Moneybarn.
~1.9% Special financing and dealer / producer price incentives.
A completely clean car without any abuse inside or outside – it really makes you feel special and as though you have achieved something.
In addition, I quite actually saved some money with the new car. While shopping around, looking for lease returns, I found a few dealers eager to take my old car for, I would say, a decent amount. If you’re lucky, you can find models which cost € 3,000 less than a second similar version sold two years ago.
Another reason that made me decide to loan for a new car was a better gas mileage. Again, this varies from one vehicle to another, but overall a new car will cost you less fuel than their older counterparts, as a result of technological advances that make cars more fuel efficient – now you probably understand why I chose the EcoBoost engine on my Ford Focus. Let’s not forget that all engines become lazy as they age while also increasing consumption.
Depreciation Vs. Maintenance costs
Another nice incentive while driving a new car is that you should never worry about it breaking down as much as the old one. In the past months I took the new car, my 2014 Ford Focus on longer trips, and took it several times camping back in the woods. I do not worry about the car breaking down while I’m in the middle of nowhere, or worry about its performance on dirt roads up in the mountains. Also, during winters it is warmer inside and the ride is totally different, not to mention the smaller driving efforts.
Yes, any car can break down at any time. However, there is a greater chance of a break down when driving a car older than your driver’s license. Estimates for maintenance on a car used vary, of course, but reliable sources put the number at about € 3,000 over a five year interval.
But the point is, in the majority of cases, the savings can add up when buying a new car, and it will be amortized if you decide not sell it too soon.
After my personal experience with the new car purchase I’d say It’s easier to find what you want, with great financing options or incentives, and enjoy a greater peace of mind. Of course, depending on what is truly important to you, whether is safety, comfort, or economy.
What would YOU choose?