Are you torn between new and second hand for your next vehicle purchase? Both options have pros and cons and myLIFE has picked out a few to help you choose the solution to suit your wants and needs.
Beyond purely financial aspects, there are several factors that we can and must consider before choosing a vehicle. In particular, you will need to decide whether you want a new car or a used one.
New cars offer a number of advantages: choice, reliability, convenience and cleanliness.
As new cars start off life with a clean bill of health, you needn’t worry about hidden defects.
Cost is obviously the first disadvantage that springs to mind, but it isn’t the only factor to consider.
New cars are synonymous with enjoyment, comfort and peace of mind, provided that you are able to afford one and don’t mind biding your time.
To summarise, new cars are synonymous with enjoyment, comfort and peace of mind, provided that you are able to afford one and don’t mind biding your time.
We are not going to address the environmental issue here because the argument is ambiguous. On the one hand, new cars comply with the strictest standards and generally produce fewer emissions (than a comparable model). On the other hand, we shouldn’t forget that car manufacturing entails a real environmental cost. Let’s leave this debate to the experts.
There aren’t many benefits to having a second-hand car, but they can weigh heavily in your decision.
The main disadvantage for used vehicles is their road history. And, unfortunately, that isn’t the only one.
Second hand. Choosing a second-hand vehicle means accepting that it has already been used, that the options aren’t necessarily to your taste and that there might be traces of wear and tear and possible faults. Keep your eyes open before buying!
This is not yet the case in Luxembourg, but some European cities have banned older vehicles from their streets.
Finally, you may need to do your sums when it comes to fuel consumption, maintenance costs, technical inspections and insurance to be certain you’re making the right decision.
Now that you are fully aware of the pros and cons, you just need to make your choice and sort out the financing. On this last point, banks can help you to finance the purchase of your car, whether it be new or second hand, electric or hybrid.
Depending on the bank, you will receive an agreement in principle in just a few minutes and can sign your vehicle loan digitally. This will also enable you to benefit from the tax advantages associated with exceptional expenses when filing your tax return or annual statement and to deduct debit interest from your taxable income of up to €672/person.
Another way of financing your vehicle is private leasing, which is a move away from ownership to ease your budget. This consists in a long-term lease, accompanied by monthly payments for a set term and mileage. There are a variety of services included in this option and it allows you to travel with peace of mind without needing to make a big investment. Financing without a down payment, tax stickers, summer and winter tyres, servicing and repairs and even breakdown cover and roadside assistance are just some of the benefits that could be included in the lease payments for this all-inclusive solution. It also offers you a set, controlled budget. Once again, banks can offer you support in the form of private leasing.
Private leasing is an attractive proposition, but other alternatives are available for shorter trips. Do you find you are taking the car out less and less? Rather than buying a vehicle, why not share one? Car sharing platforms such as CARLOH and FLEX allow you to book and use a car as and when you need to. This is not only a cost-effective solution, but is also environmentally friendly and ensures a degree of flexibility. There are no or very few recurring costs, and it can save you the pains of hunting for a parking space, as shared cars usually have designated spaces.
If you need to make other trips, you can choose soft mobility options, which are free for the most part: tram, train, walking, scooter or even bike (traditional, self-service hire or electric).
New or used? Whatever you decide, you can count on your bank to provide financial support in the form of a loan or a private lease.
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