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Should I get a Used or New Car Finance Deal?

June 9th, 2022

Should I Get a Used or New Car Finance Deal?

New car finance vs used car finance – let us take you through the advantages and disadvantages.

With the ongoing production issues throughout the automotive industry, many have turned to used car finance. While this has meant that consumers have avoided the often long waits for new cars. This has led to a massive increase in the used car market (up 40% from this time last year)!

White BMW car. New car finance

Costs of Ownership

The two biggest costs of ownership when you buy a car are depreciation and maintenance. New cars, if treated well, shouldn’t have any faults & should also be covered by a manufacturer’s warranty. Their residual value should also remain strong.

Used cars will already have begun to depreciate and therefore may not be worth much at the end of your lease. An older car may also need more maintenance due to wear and tear.

Reliability

Used car finance could leave you high and dry, with limited warranties and more to go wrong due to vehicle age. Money saved by leasing an older vehicle may not equate to money lost during downtime and on repairs.

New car finance will come with a lengthy warranty on the vehicle. Therefore, offering a financial cushion should any vehicle issues arise.

Economy

Another factor to consider when you’re comparing new and used cars is fuel economy. Newer models are often designed for maximum fuel economy.

Saving yourself money on each journey is a vital part of the total cost of your vehicle. So, considering a new car may save you more than expected.

Emissions

As we all make moves to be more climate conscious, city centres are starting to charge high emission vehicles. In addition to having less of an impact on climate, a new car will adhere to the latest emissions standards.

London’s ULEZ zone charges over £10 a day for high emissions engines. So, you may save yourself money in the long run by choosing new car finance.

New Car Finance vs. Used Car Finance

There are benefits to both new and used car leases. Both will allow you to save costs upfront and spread payments across the length of your finance lease. While used cars on finance may seem cheaper, it may cost more for the whole life cost of the vehicle. New cars on finance will come with a warranty and save you money on maintenance, as well as being more economical to run.

If you have further questions about cars on finance, please contact us or call 01179625314 and speak with one of our leasing experts.

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