What you need to know about car price depreciation
When you come to buy a new car, there are of course many different things you'll need to give careful consideration to. Obviously, price is one of the most important considerations of all - especially at a time when so many of us are struggling to keep on top of our finances. Household incomes are being squeezed by a combination of wage stagnation and steadily rising living costs, and there seems to be no end in sight. You might think, in the circumstances, that buying a new car at this stage might be a bit of an extravagance. However, there are genuinely outstanding deals out there provided you know where to look.
It might well be tempting to splash out on a new car, but it could well be the wrong option for you. The most important thing you need to remember when buying a vehicle is that new cars have a tendency to lose value rapidly, particularly within the first few years of their lifespan. In fact, new cars have been known to lose as much as a third of their value within two or three years. This could mean that if you find yourself having to sell a relatively new car earlier than you might have expected, you may have no choice but to accept a considerable loss on what you originally paid for it. This could leave you out of pocket to the tune of several thousand pounds - which few of us can afford at the present juncture.
This is why you may want to think about buying a pre-owned vehicle instead. While car price depreciation works to the disadvantage of owners, it works to the advantage of owners - so provided you shop around, you should be able to find three or four-year-old cars available for genuine bargain prices. There are countless motorists who keep falling into the trap of buying new cars and then find that they have to sell them for far less than they originally paid. Take a look online, in the classified sections of newspapers or at used car dealerships to get a better idea of just what deals are out there.
You should also think about just what you want to use your car for before you start searching. If you only intend to use it for relatively short commutes, then your best bet may be to simply opt for a small runaround to get you from A to B - it hardly seems worth investing in a 4x4 or a sports car for the purpose, for instance. This should help you narrow down your search, saving you time and effort.