Is Buying A New Car Economically Savvy?

There is a big difference between buying a new car and buying a used car. In the current economic climate buying brand new seems like a quite a luxury. Whilst some enjoy having the latest number plate and that new car smell, others are put off by the huge amounts of depreciation suffered by new cars. As soon as you drive a new car off the forecourt it becomes a used car and this brings with it a big drop in value.

It is estimated that David Beckham’s cars have lost £181,322 from their combined value this year alone. Those of us who don’t have two Bentleys, a Hummer and a Lamborghini would be hit so hard but it’s all reletive. Another problem is that a lot of people tend to buy new cars on finance. This means that they end up spending more than the value of the car. This is made even worse by the fact that once they own the car outright it’s not worth anywhere near as much as they paid for it.

So what are the other options?

• Getting rid of your car altogether and walking everywhere is one, although it’s completely impractical for most.
• Car rental companies are becoming used more and more by those who aren’t on holiday particularly as many now offer pay as you go car hire.
• Car share schemes can also help those who don’t need a car often enough to warrant buying one or those who want to use their less often.

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