While there are many different kinds of cars that can be bought, knowing what type of vehicle you should spend your money on can be quite the conundrum. Read on to give yourself a better idea of what kind of car is the most financially viable for you.
Every keen motorist has fantasised over pulling out of a car dealership in a brand new car of their dreams. Those of us who buy cars brand new often claim that the feeling that they get from their purchase is much better than that of a used vehicle. There is definitely a novelty factor involved with buying a new car, and those of you that are looking for an ‘experience’ rather than simply a car to get from A to B in may be tempted to purchase their car brand new. New cars are also typically more technologically advanced than used vehicles, as well as being more fuel efficient and safe.
However, cars that are bought brand new tend to suffer most from the financial process of depreciation, with the majority of new cars losing 20% of their original value as soon they’ve been driven away from the dealership. With this in mind it is fair to say that buying cars brand new is not the most frugal of vehicle-purchasing options but is often considered to be the most rewarding driving experience.
The biggest positive about buying used cars is that you can avoid the financial burden of depreciation, making used cars the most financially savvy purchase for those in the market for a new car to drive. This also allows you to sell the car at a later date without losing much of the value that you paid for it. And since the majority of drivers do not require many of the perks that come along with buying a new car and simply need a vehicle for getting around, used cars are mostly seen as the best option for motorists that are simply looking to get from A to B.
Of course, there are risks associated with purchasing a car that’s already been used. Ensuring that the car is fully functional and road-worthy is a process that may prolong the car-buying procedure but is necessary in order to confirm that you are not being sold a faulty product. Used cars are often considered to be riskier purchases than brand new ones, though the financial benefits of them tend to outweigh these risks.
Classic cars are often seen as more of an investment than a primary mode of transport to people that own them. Since classic car values are often quite difficult to figure out, there is usually a significant financial incentive involved with them that makes them an attractive prospect for car enthusiasts. The vintage nature of many of these cars also means that there is often a chance for their value to rise as time goes on, meaning that a significant profit could potentially be made on some of these vehicles.
While the value of classic cars can sometimes increase, the cost of driving such cars can be quite financially straining. Classic car insurance tends to be more expensive, and older cars tend not to be as fuel efficient as modern vehicles. Nonetheless, many owners of classic cars tend not to spend too much time driving them and see driving them as more of a hobby. Whatever the case, classic cars are not necessarily for the budgeting motorists out there.
Depending on your preferences, there are potential financial benefits to all of the different kinds of cars. All you need to figure out is what kind of car suits you and your needs most and give you the best value for your investment.