Why it can be financially beneficial to buy a new car over a used one

When it comes to purchasing a car, many motorists will not even consider buying a new automobile. This is because they believe that the smarter financial move will be to buy a second-hand car, but this is not always the case. It can, in fact, be financially beneficial in the long-run to purchase new and you also get the benefit of getting behind the wheel of a brand new vehicle and not having to worry about an unknown history.

Financing

You will find that if you are looking to finance the purchase of a brand new automobile instead of buying outright, that most banks will offer much lower rates than they do with used cars. The reason for this is that the car is worth more and has not yet been hit by depreciation. If you plan to go this route, be sure to do your research and compare deals to find the best one.

Warranty

Another financial benefit is that you will get comprehensive warranty when you purchase new automobiles. Typically, the warranty will cover repairs and maintenance for 3 or 4 years or 36,000 to 48,000 miles (whichever comes first). Second-hand cars come with a limited or no warranty.

Running costs

Cars are becoming increasingly more efficient with higher fuel efficiency and lower emissions. In addition to the environmental benefits, this also means that the running costs are generally lower than with a second-hand automobile. You can also get tax benefits on cars with lower emissions.

No history

When you buy second-hand, there is always the chance that the vehicle has a hidden history which could turn out to be a nasty and expensive surprise down the road. Even a car with a clean history is likely to have higher maintenance, as it will have general wear and tear.

These are the financial benefits of buying new over used. You can also save a large sum when you shop at established dealers who have multiple dealerships, including RRG Group.

shutterstock_342255788Many motorists do not consider buying a brand new car due to the high upfront costs. However, you may find that, in the long run, this may actually be the smarter financial investment to make if you are able to find a great deal. Not just this, you can also have the vehicle built to specification and have the joy of driving a car which has had no previous owners.