What to know when buying a car ‘new’ or ‘new new’

With the festive season having officially started, the term “gift” very much rates as the word on most people’s minds or lips heading after a tough year.

Centre of the gift giving for someone or oneself is a new car before the end of the year in order to either avoid a price rise or take advantage of a massive saving initiated as a way of clearing stock in readiness for the new year.

In order to take advantage of a looming saving or be wary of any pitfalls, online vehicle insurer Naked as released the following tips worth taking into consideration before signing on the dotted line.

• Type of car

Probably the most important question is the type of vehicle that would suit not only your requirements, but also your pocket when it comes to insurance, maintenance and monthly payments.

Taking the flip-flopping fuel price into account plays a big part as does the inherent reputation of the vehicle and its manufacturer parts and reliability perspective.

• New vs new new

A mental barrier many cannot bridge is the year in which the vehicle is bought in spite of it not having received any changes underneath the bonnet or aesthetically.

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While buying in 2023 comes with the bragging rights of having bought a so-called new new vehicle, purchasing it in 2022, although without the “new new” tag, could come with a lower price tag as the mentioned stock clearances.

• The price of inflation

Besides getting rid of “old” stock, inflation counts another reason to buy a car before the end of the year as it could be significantly more expensive come the new year.  

• Hold out for the new model?

Another catch-22 situation is determining whether you should buy a car now, or wait for its likely replacement that will have with a steeper price tag. It is, therefore, important to do the necessary research before committing to possibly being taken for a ride based on price.

• State of account

Arguably the area where buyers come unstuck the most is buying without knowing, or not wanting to know, the state of their bank accounts.

Careful self evaluation is, therefore, for required – not just in the short-run, but also in the long-term as the vehicle’s upkeep, once its warranty runs it, could become unattainable.

• Grudge buy or a necessity?

“All too many car purchases are fuelled by a desire to show status or keep up with peers,” Naked co-founder Ernest North says.

“If you’re driving a reliable, run-around car that is fully paid-off and you work from home, you probably don’t need to upgrade to a petrol-guzzling, luxury SUV.

“You might thank yourself in future years if you invest the deposit and monthly repayments instead or put the money away towards a home deposit. A car is not an investment; it’s an expense.”

For more information, visit Naked by clicking here.