The lowdown on buying new

Unaffordable? A rip off? You might be surprised by the deals you get if you buy fresh off the car production line.

“In the mid-Nineties I bought a new racing-blue BMW 3 Series soft top for £28,000. I drove away from the showroom feeling absolutely fantastic,” says Match Of The Day pundit Mark Lawrenson. “I realised it had lost 10% of its value within the first week, but that didn’t take the shine off. I wouldn’t have bought it if I couldn’t afford it.”

Why it’s good
• Brand new car, no history, no worn-out parts.
• Warranty – protects against parts failing for first few years.
• Juicy incentives – free or cheaper insurance; cash lopped off the price; zero % deals (you don’t pay interest on the money you’ve borrowed to pay for the car.  But you might have to pay a fat 50% deposit and pay back the loan faster to nab this).

…and why it’s bad
• Lose money in depreciation
• New car niggles – small faults could happen

Posted in Owning.

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