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Old Car vs New, the Financial View

Should you keep your old car or buy new? What would make the best financial decision?

There are several factors to consider before working out what is best for you.

Car maintenance

Regular maintenance is the only way to maintain value and keep your car in top condition.

Oil changes to regular servicing can add years to the life of your vehicle and also help avoid costly repairs as the vehicle ages.

So if you are the kind of person that tends to skip looking after your car properly then a newer car may be better suited to you.

Safety

Safety may be your primary concern regardless of cost saving, and in this case, newer cars will be better equipped to keep you safe with the latest in in-car safety technology.

You may be able to retrofit your older car with better safety, but the added cost plus the limitations of retrofitting may not make it as viable as a new car.

Collateral

If you are looking to use your car as a potential future asset, then whether you are looking for a logbook loan on an older car or new then a newer car will make more sense.

Newer cars are looked upon more favourably by lenders and will get you more money, that is unless your older car is a rare vintage Ferrari!

Petrol savings

A newer car in general will get you better mileage for your money, which over time can be a considerable sum.

This may not matter to you as you may just drive locally while barely putting any mileage onto your older car, so here, the cost saving of buying a new car may be negligible.

Car insurance

Car insurance is generally higher for new cars, due to their obvious replacement cost.

On a new car you will probably also want full comprehensive cover whereas on an older car you may choose the less expensive 3rd party fire and theft car insurance to save money.

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