Advantages And Disadvantages Of A New Car

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New Car

Having a new car comes with plenty of sentimental value for the owner (or lessee if you’re financing the car), along with plenty of additional perks from the manufacturer. However, for a lot of people it’s a question of price, depreciation (how well, or not, the car holds its value) and what car to choose.

Read on to discover the advantages and disadvantages of a new car before deciding on your next vehicle.

Advantages

Manufacturer’s warranty

One of the greatest advantages of a new car is that it comes with the manufacturer’s warranty.

The extent of a warranty’s cover for defects and repairs will differ with each manufacturer, but most comprehensive policies protect the following:

  • The engine

  • Fuel/ignition systems

  • Electrical faults

  • Gearbox

  • Steering

  • Suspension

  • Cooling system

  • Clutch

  • ABS (Anti-lock Braking System)

As the first user of a car, a warranty is an added peace of mind in the unfortunate event your motor encounters mechanical or electrical issues.

Remember: a manufacturer’s warranty will be voided if the car is not maintained properly, which will mean you won’t be able to make a claim if something goes wrong.

The length of a warranty will vary depending on the make of car you choose, but standard policies are often three years/36,000 miles. But brands such as Kia and Hyundai specialise in offering ones which last longer – seven years/100,000 miles and five years/unlimited miles, respectively.

If you’re wondering what the mileage figure is for, this means that the policy will last until the specified number of years has passed or you drive the vehicle for that number of miles – whichever comes first.

Vehicle history

A new car is a guaranteed peace of mind that used vehicles don’t always offer.

For starters, you’re the first user of any brand-new car. The fact it’s coming straight off a dealership or garage floor means any worries of unknown vehicle history or unsettled finance from previous owners can be forgotten.

This isn’t to say all used cars should be looked at through a paranoid black-market lens. There are more examples of compliant used car salespeople than their dodgy counterparts, but it’s nice knowing you won’t have to check vehicle records against the DVLA (Driver and Vehicle Licensing Agency) database before going to view it.

Latest gadgets

A less practical, more consumerist advantage of a new car is that it’s likely to have the latest tech features installed.

Whether it’s the latest infotainment systems, wireless charging, driver safety or all three. Manufacturers are constantly striving to facelift existing models in order to keep up with the demand of drivers and innovative creations from competitors. As a result, we get a more enhanced driving experience.

At the heart of these advancements are ADAS (Advanced Driver Assistance Systems) which most new cars come equipped with.

Even entry-level models from safety pioneers in the industry are readied with this handy tech. For example, you’ve got the Volvo XC40, which in its most basic form has hill descent control, a lane keeping aid and steering intervention if the vehicle detects that you’re leaving the road.

Disadvantages

Price

Having a new car is nice, but the promise of a squeaky-clean motor that has no miles on its clock and is packed with the latest tech comes at a hefty price.

Recently manufacturers have tried to wind back the clocks a bit and make new productions more affordable, but options are seriously reduced as features become more basic.

For instance, take Dacia. The Romanian subsidiary of esteemed manufacturer Renault made it both companies’ job to design and produce a car which would be practical, safe and run efficiently enough to justify the spend.

The result? The Sandero, which can be yours new for just £6,995. Though you should remember that for basics such as DAB radio, electric front windows and air conditioning you’ll need to spend £1,000-£2,000 on the two higher trim levels.

Not all new cars require you to pay a total lump sum before you get behind the wheel. Car dealerships and providers now offer low-interest finance options to make it easier for you to get your hands on a new car, with the option to own it at the end for a certain price, known as a ‘balloon payment’. However, you’ll still need to budget for a deposit, monthly payments for the duration of your contract and the final cost to own the car, if you so wish.

Depreciation

Consider depreciation of the car’s value, too, if you’re looking for a new car.

Unfortunately, the minute you drive away in your new car, it starts to lose the value at which you got it. This is what is known as depreciation.

Thankfully, the rate at which your new pride and joy depreciates can be slowed down by being savvy with your choice of manufacturer. Be sure to do some research on the types of makes and models renowned for holding their price as a way of helping you decide on a new set of wheels.

Remember: vehicles which depreciate slower than others will more than likely have a bigger asking price due to typically better build quality all round.

Premium manufacturers such as BMW, Audi and Mercedes all produce vehicles which hold their value considerably better than others. The problem is that these are much more expensive, too.

Fortunately, more affordable matches from the likes of Volkswagen and Mini have entered the market. So, be sure to shop around before committing to a new motor.

Do you like the sound of a new car, but don’t want to pay lots upfront to get one? Then why not consider leasing? Compare prices on our latest lease deals to find your ideal new car with flexible initial payment options.

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