It depreciates like crazy
You may be thinking that all cars depreciate, unless if you are rolling with the big bucks and own those classy vintage cars. Not all cars are created the same, even when it comes to the most basic types. You may knock off 50% of your car’s value due to depreciation, but there are some cars that retain their value better.
When buying a new car, you need to think like a buyer who will be interested in your car a few years from now. Sticking with a popular brand that has a high performance, body, and colour can see you get the best return. Cars brands such as Audi, Mercedes-Benz, Toyota Hilux and Corolla to name a few can retain anything between 59% -73% of their value.
Choosing a car that doesn’t bust your budget when it comes to depreciation can make a difference for new car owners. Therefore, researching the car you are interested in can save you thousands of dollars in the long run.
A car that is hard to maintain
Having a car that comes with high end finishes and a mean looking interior that will make your fellow passengers swoon is one thing. There are some interior features of a car such as piano black finishes and cream leather seats that give your car that sleek out-of-the-box finish to your car that can soon turn into a scratched and sticky mess, especially if you have children. When purchasing a new car, it is vital to know what it would be used for, whether it matches to the type of lifestyle you have, and if it is affordable when it comes to maintaining both the exterior and interior.
Comes with high running costs
Ongoing running costs of your new wheels can either make or break your budget. Although it may look like a mean beast and come with all the fittings that you desire, it is vital to consider the ongoing costs. These costs will differ from state to state.
According to RACQ, the average cost Australians had to fork out when it came to ongoing costs ranged between $116.11 a week for cars that were classified as micro while $332.82 for cars classified as SUV all terrain. Researching the ongoing costs that come with owning a new car will let you know whether placing your hard-earned money on the car will be worth it or not.
Always remember to have a realistic budget in place to avoid and compare your way to a low rate car loan to avoid biting off more than you can chew.