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What Do I Need to Buy a Car: New, Nearly New, or Used Car?
In the market for your next car or your first car? Not sure whether to buy new, nearly new or used? Look no further! Whichever option you choose comes with pros and cons, and some suit people better depending on your circumstances!
Should you finance your next car?
There are many great finance options available on new cars, and this tends to be the most popular option if you’re looking to buy a new car. This is because most people don’t have enough in their savings to buy a new car outright. It’s also a widespread misconception that you can only get finance on a new car.
However, there are many options for financing a used car of your choice! If you’re buying your first car, then you might want to pay for a used car outright with cash so you can own the car from the offset.
Being accepted for finance is never guaranteed, and any dealers or brokers offering guaranteed car finance are lying to you! Finance lenders want to be sure that you can be trusted to make your car loan repayments on time and in full. With this in mind, it is usually better to have a good credit score so you can get accepted by more lenders and get the best deal possible!
Should you buy a new car?
New cars have many advantages, such as a shiny new car that you are the first owner of, and you can also customize the specification to get your car exactly how you want it! When buying directly from a dealer, you can also benefit from warranty packages and servicing included too.
New cars also have the most up to date technology, which you may not be bothered about, but it means better safety and reliability technology too. New cars come out in March and September every year in the UK.
One of the downsides of new cars is the rate at which they depreciate. Car depreciation is the rate at which your car devalues. Your car will lose its value up to 50% in the first 3 years. This means when you come to sell your car, it may be worth much less than when you first purchase it.
Should you buy a nearly used car?
A nearly new car is essentially a used car. However, it is ‘nearly new’ as a manufacturer or dealer has registered it before being sold. You won’t be the first registered keeper, but you will be one of the first to use it every day and put some miles on the clock.
You won’t legally be the first-ever owner, but you are essentially getting a brand new car! You won’t be able to pick the specification as you would with a new car, but that doesn’t mean that you can’t find the perfect car for you! You can also grab a great bargain on a nearly new car on finance as they aren’t as popular as new cars, but they basically drive as new!
Should you buy a used car?
As mentioned, used cars can be great to buy with both cash and car finance deals. You can get a Personal Contract Purchase and Hire Purchase car finance deal on used cars. The biggest benefit of a used car is that it has usually depreciated most in its first few years and then starts to depreciate slower.
Your car insurance rates may also be lower on a used car rather than a new car! One of the disadvantages of buying a used car is that you don’t know how it has been treated in the past, and you may need to fork out for more repairs than you would with a new car. If you are buying from a private seller, you should inspect the car properly yourself and ask for any supporting documentation such as service and MOT history and whether the car has been in a major accident before or not.