Why buying a newer car works out cheaper in the long run
Why buying a newer car works Out Cheaper in the long run
Are you one of the growing number of people who own older cars in the UK that are considering upgrading to a newer, used model? Whilst it may be tempting to simply carry on with your current model, the fact is that for each and every month more that you own it, an older car will cost you more and more money. We take a look at some reasons you should upgrade your car and why it makes sound financial sense.
Newer cars are more fuel efficient
These days, technology seems to evolve at an ever-more increasing rate. Just think about what sort of mobile phones people were using in 2000 to the powerful smartphone devices we have now, the leap in technology is huge. Even looking back at the past five years, the evolution is significant. The same can be said for fuel efficiency. Every year, the technology available to make newer vehicles more fuel efficient advances, meaning that generally newer cars are much more fuel efficient than older cars. If you’ve been driving around in an old car and find yourself visiting the petrol station a little bit more than you’d like, you may not be aware just how fuel efficient some cars have become in the past few years. According to AutoExpress, these are currently the UK’s most economical cars.
● Peugeot 208 1.6 BlueHDi 75 - 94.2mpg
● Peugeot 308 1.6 BlueHDi 120 - 91.1mpg
● Ford Fiesta 1.5 TDCi 85PS - 88.3mpg
● Nissan Micra 1.5 dCi 90 - 88.3mpg
● Peugeot 308 SW 1.6 BlueHDi 120 - 88.3mpg
● Renault Clio 1.5 dCi 90 ECO - 88.3mpg
● Vauxhall Astra 1.6 CDTi 110PS ecoFLEX - 85.6mpg
● Citroen C4 Cactus 1.6 BlueHDi 100 hp ETG - 83.1mpg
● Ford Focus 1.5 TDCi - 83.1mpg
● MINI One D hatch - 83.1mpg
Taking the Ford Fiesta 1.5 TDCi as an example, if you drive the UK average of 7900 miles per year using fuel that costs 118p per litre, that equals a cost of just £561.27 per year for fuel.
Let’s compare that to a popular used car that we still see a lot of on the roads, the Honda Accord 1.8i (1999 - 2003) which has a fuel economy of 30mpg. Driving an average of 7900 miles per year in this car using fuel that costs 118p per litre will cost you £1652 per year, nearly £1000 more per year than the newer Fiesta. And the more miles you do? The more you save.
You don’t have to go for one of the above cars to make significant fuel savings, there are lots of fantastic newer used cars on the market that have great fuel efficiency levels and will save you significant amounts of money in fuel over the course of its life.
Cost of repairs
It’s a fact of life that as a car gets older, the more work will need to be done on it to keep it running safely and efficiently as possible. As well as the likelihood of faults arising, simple wear and tear will ensure that certain parts will need replacing from time-to-time, and the likelihood that your car will get through its MOT without needing work diminishes too. According to data by WhoCanFixMyCar.com that was published in the Daily Mirror, the number of repairs needed by a car and the average repair bill increases every year you own a car. Updating your car on a more regular basis, say every four or five years can save you a significant amount of money in repair bills.
Newer cars are often cheaper to insure
Perhaps one of the biggest myths that hold people back from buying a newer car is the belief that newer cars are more expensive to insure. You can see the logic behind such thoughts, as a car that is two years old will be much more expensive to replace than a car that is five or six years old. However, this is just one of a myriad of factors that insurers consider and you will find often that it is actually cheaper to insure a newer car than an older one. As well as newer cars being less likely to breakdown, newer cars are more likely to be serviced regularly and will almost always have higher safety standards.
Upgrading your car improves your safety on the road
Comparing an old car with a newer model and one of the main differences you will find is that newer car models are loaded with safety features. These often include:
● Antilock brake systems
● Traction control
● Electronic stability control
● ISOFIX child seat anchors
Additionally, all cars made since 1997 go through vigorous, in-depth and independent testing by Euro NCAP. If you’ve got a car older than that, then it may not have been rigorously safety tested as it could be. Even if your car is newer, if it wasn’t built within say the last five or six years, it may not be as safe as it could be. Because safety is a big concern of consumers, 5* Euro NCAP ratings are a major selling point for manufacturers, which is why in recent years we have seen more and more cars be awarded this for attaining the highest standards of car safety. Euro NCAP have a search facility on their website where you can check the safety of your current car and look at the safety ratings of the ones that you may be looking at buying.
Peace of mind
Perhaps the most compelling reason to update your car is the peace of mind that this can bring you. Knowing that you have a newer car that is safer to drive, cheaper to drive and is much less likely to break down lifts a weight from your shoulders. Whether you are someone who uses their car to commute thousands of miles per year or whether you use it just for local travel, knowing that you can place your complete faith in your car to get you to and from where you are going is a tremendous plus and lets you get on and enjoy life, free from worrying about potentially expensive car repairs.
Is it worth buying new? Or is a used car a better option?
As you can see, there are a great deal of benefits of updating your car and buying an updated used vehicle. But what about buying new? Surely you get all of these benefits too by purchasing a 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 the vast majority 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. According to Carfax.com, on average, a new car will lose 60% of its total value over the first five years of its life.
With a newer car that’s say 3-7 years old, you get all the improvements discussed above 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.