New cars and manufacturer upgrades – what does this mean for the used car market?
2019 will bring some exciting new entrants to the car market and see some of Britain’s most popular cars getting a manufacturer’s update.
Below are some of the cars expected to see an upgrade in 2019:
• Nissan Juke
• BMW 1 series
• BMW 3 series
• Renault Clio
• Vauxhall Corsa
• Peugeot 208
• VW Golf
There could be used car bargains to be had
If you’re not in the position to go out and purchase a brand-new car this year, there’s some good news. The arrival of some of these new and updated models will see many people rush to buy them. What does that mean? It means they’ll need to get rid of their old cars, and that can result in a surplus of used cars on the market which can result in prices being driven down.
Discontinued models can offer great value for money
Some of the best used car bargains to be had are those cars that have been discontinued. Because they’ve been in production for several years, any minor niggles that these cars may have had in their early years of production will long have been ironed out in the production process.
If you’re not bothered about having the very latest version of a particular car, then there can be some fantastic bargains to be had with these discontinued models.
Is it worth buying new? Or is a used car a better option?
There are several benefits of updating your car and buying a newer vehicle including increased efficiency and improved safety features. But what about buying new? Surely you get all of these benefits too by purchasing a brand-new vehicle?
Indeed you do. However, there is one important differentiator between buying a newer, used car and purchasing a brand-new vehicle - Depreciation.
Depreciation is essentially the loss of a car’s value over time. Like any asset, any car (unless it’s a particularly valuable and sought after classic or vintage vehicle) loses value over time, but most of this loss is experienced in the initial years of a car’s life.
The exact amount of depreciation depends upon the make and model of car but it’s generally accepted that as soon as you drive a new car off the forecourt, it loses between 10% and 30% of its value.
With a newer car that’s a couple of years old, you get all the improved benefits, but you’ll avoid the big drop in value of your car. That’s great news if you decide to sell it in the future.
Thinking about getting a newer car but not sure how much you can afford? Why not work out what your monthly repayments could be with Zuto’s car finance calculator?