Many people start the New Year with a resolution, most…ok the majority decide to join the gym. Shed a few pounds for beach season, look better, be healthier, you know the drill…the gyms are empty by March.
But what if you want a new set of wheels? It’s a big goal to work towards, but it’s achievable any way you look at it.
Here are a couple of things you need to think about.
New things are nice, we all get that. But do you REALLY need a new car? I know I’ve bought new cars in the past when I’ve had no need to!
It’s a nice thing to do, replacing and ageing vehicle with one much newer and significantly more powerful than your old one. It makes you feel good, successful, you’re winning in life.
But if you have a perfectly good, useable, safe car. You might want to think twice. It will give you time to save up for that next rung on the ladder, the next one up from where you were aiming. Maybe leave it another year?
Ok so you need/want a new car. But can you afford it? If you have enough savings stashed away under your mattress then all’s well and good. But for the majority of us a car purchase means a monthly payment in whatever form of credit you take.
No matter if it’s a personal loan or leasing, your monthly outgoings will most likely increase because of that new lump of plastic and metal sitting on your drive…it doesn’t matter how pretty it is.
You can stretch yourself of course, just make sure it’s within your means. Think about the worst case scenario, what if you lost your job? Could you still afford it? How would you get out of the situation?
Would you be able to sell it, or can you just give the keys back and end the lease early without a costly penalty? It’s worth thinking about.
We’ve discussed the new or used dilemma here on Carwitter before. I don’t think there’s anyone that doesn’t enjoy that box fresh, new car smell. But when you could lose a fortune in depreciation if you’re buying new from a dealership.
Leasing negates this by effectively paying for the depreciation, but that’s a bit like renting your car…you never fully own it. It has its benefits, you can chop your car in after the term for a brand new one. No increase in payments, and you’ve already put a deposit down.
Going second hand has the uncertainty of a car’s history, but if you can find a one owner, low mileage example around 2/3 years old you could probably end up saving half of the vehicles original value. It takes time and effort to find such examples, and you need to know what you’re looking for, so it’s not for everyone.
You’ve got the next 12 months to decide which way you go, hopefully we’ve helped you out and given you some food for thought during that time. Maybe you have been buying cars for years, so why not consider getting a car through car leasing?
If you have an idea about what car you might fancy for 2017, Hippo Leasing will be able to source it through personal car leasing. It is something to consider. Maybe even whilst you’re at the gym?
Owner / Editor of Carwitter – French car fiend, hot hatch lover. Follow @car_witter