Updated: May 24, 2013

With the volume of new car sales sky rocketing in the UK during the last nine months, it would appear as though consumers are shopping with renewed confidence and resilience. Appearances can be deceptive, however, and it is all too easy for shoppers to become swayed by positive sentiment when they are in the market to buy a car. The decision of whether to buy a new or used vehicle must always be a deeply personal one, that is based on individuals financial circumstances and an underlying spending philosophy.

 

Buying Used or New Vehicles in 2013: Three Things to Consider

 

So what are the key factors that you should consider when choosing between a new and used car? Here are 3 extremely important considerations: -

 

Total Household Income and Existing Debt Levels

 

A car represents a big ticket purchase, so it must always be given careful consideration. It is especially important to consider your total household income and existing levels of debt, as these will influence your capacity to make any regular finance repayments that are associated with the procurement of a new car. If you have low levels of disposable income or are currently working to reduce a cumulative debt liability, you may be better served by buying a quality used car for a single, upfront fee.

 

Your Employment Status

 

While new vehicles are almost always paid for under a fixed term financing agreement, there is a greater degree of flexibility when it comes to buying used cars. Your existing employment status is therefore influential in the decision making process, as this dictates your monthly earning capacity and future job security. While there are no guarantees that those in employment will keep their job indefinitely, individuals with permanent roles of employment are more likely to purchase new cars than those who work on a part time or temporary basis.

 

The Value of your Current Car

 

Thanks to service providers such as ExchangeandMart.co.uk, it is possible to use your existing vehicle as part-exchange to secure a new car. You can also use these resources to sell your car directly, and its value may have an influence in determining the type of vehicle that you ultimately invest in. If you current car boasts excellent resale value, you may be able to use this as leverage to obtain a more affordable deal on a new car. If the opposite is true, you may be forced to consider more affordable used models.

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