Finding a cost-effective car that will go the distance as your family grows is no mean feat. Follow this guide to ensure you consider all aspects of the purchase, from the price tag to its long-term value and running costs.
Shop used models
Did you know that on average, brand-new cars lose around 15% of their value as soon as you drive them off the forecourt and continue to depreciate by 15% year-on-year throughout your ownership? This means that within five years, a new car would be worth around half of the amount you paid initially.
While this depreciation still applies when you buy used cars, the price difference is less dramatic, so they hold their value better over time. Pre-owned vehicles have a significantly lower price tag than brand-new models so you’re saving from the start as well as safeguarding value.
Remember to study the vehicle history when shopping used cars to avoid being landed with something unsafe or requiring a lot of expensive work. Check the MOT history, mileage and whether the car has ever been involved in a collision. This will help you judge is the seller’s valuation is accurate, giving you room to negotiate a better deal.
Consider running costs
As well as looking at the sale price, you should also consider the running costs of the vehicle. Paying more upfront for a car that will be cheaper to own could save you money in the long run.
Especially given the high fuel prices in recent years, you will save by choosing a car with good fuel efficiency. Smaller models such as the Peugeot 208 and Kia Niro are quick to warm up on short journeys, giving you excellent mileage per litre of fuel on quick town or city hops. Hybrid models like the Toyota Prius or Corolla help you optimise the use of fuel for sustained efficiency.
Other mandatory costs to consider include tax and insurance. Generally speaking, higher-priced cars will have more expensive premiums and tax charges to match. You can use online resources to check tax costs and get insurance quotes before purchasing the model you have in mind.
Prioritise easy maintenance
Finally, you should prioritise a car that’s going to be easy to maintain. Vehicles requiring constant repair can end up costing you far more than you would be able to sell them for, so it’s always better to shell out more initially for a car in great nick than buy a beaten up banger.
Check the condition of the car very carefully, with a professional mechanic if you have any doubts as to the internal workings. Test the lights and tyres, inspect the interiors for damage and always take the vehicle for a drive before signing on the dotted line. With used cars sold independently, you have no guarantee of the car’s condition, so request the log book detailing its service history and be wary if this is unavailable.
Think about any challenges involved with sourcing car parts and fixing issues too. If these are more complicated than usual you may find yourself confined to more expensive servicing solutions.
