The short answer is no. One must take into account a few facts when evaluating this question in order to answer it. Primarily you need to acknowledge that almost every person’s circumstances are different. It may just be time for an upgrade of a vehicle, you may own an A-class Mercedes Benz with warning lights on the dash, you may be on the search for your first motor car. Almost all circumstances are different and in almost all cases, brand new is not the best choice.
Firstly, we need to clarify what we mean by brand new. Brand new is you are the first owner, the vehicle has under fifty kilometers on the clock when you purchase it and the moment you leave the driveway your vehicle has depreciated by thirty percent.
The simple fact is that a motor vehicle is an depreciating asset. With the exception of some classic cars and collectibles that are obviously increasing in value. The highest window of depreciating on a motor car is in the first year. As previously stated some vehicles depreciate within the first twelve months by up to fifty percent.
In almost all cases, you are financially better off not purchasing brand new but rather look for a trade-in vehicle that is a few years old. Regularly the current model vehicle can be found with substantial savings. Recently a client of ours purchased a vehicle only six months old with less than 20,000kms on the clock for four thousand dollars less than current retail pricing. This was a saving of over ten percent of the value of the vehicle.
Some argue that it is a suitable tax deduction for business and that business owners should buy brand new. We won’t use this article to go into the ins and outs of tax and how it works but in a nutshell, this is an unsatisfactory argument and even those who can claim motor vehicles as a tax deduction should look at the used vehicles for substantial savings too.
In almost all scenarios our clients have made substantial savings by purchasing a new used vehicle, even if its the current model as opposed to buying brand new. Why be the one to lose all the money on your depreciating asset when someone else has already taken the hardest punch for you.
If you are ever in need of a helping hand with this we strongly recommend the services of Deb and Adrian of Premium Car search. You can find their website here.
They act as a vehicle broker, who will always land you the sort of deals this article discusses buy purchasing vehicles from anywhere across the nation. You may need a $50,000 Hilux but Ceb and Adrian will find you one with 15,000kms on it for $42,000 * Note pricing is not factual rather just an example to demonstrate these services.