Most of us think that we know a fair bit about how to judge the relative costs of different vehicles. When we are considering a purchase, we probably do quite a bit of homework, looking at various factors to help us reach an informed decision. This may include looking at factors like the insurance group of the car. A lower grouping can save a lot of cash but care should be taken to understand the specific model, because groups can vary a lot even within a model range. More lately, emissions also play a part in running costs. Those who choose a low emissions car can enjoy reduced or even zero rated road tax.
Fuel costs are a major expense in motoring and as reported by industry body, the Society of Motor Manufacturers and Traders (SMMT) even the industry itself is going to great lengths to keep fuel consumption to a minimum with a combination of new technology and better driving practices. The official fuel consumption figures are recorded for every model that goes on sale in the EU, so it should be a relatively simple matter to choose an economical car. Similarly, there is now a great deal of information online as to which cars are more reliable, allowing us to choose a model that won’t cost a packet when it comes to servicing and repairs.
INCREASED CAR SALES
With all of those costs, you could be forgiven for assuming that many of us would avoid buying a new car altogether, but nothing could be further from the truth. Instead, as reported by the BBC, sales of new cars in the UK have been growing steadily for more than three years and are close to hitting an all-time high. Industry observers cite a number of reasons behind this growth. The first of these is simply pent up demand, after many motorists put off buying a new car during the recent financial crisis. A second reason is given as many motorists receiving compensation for mis-sold insurance and using this as a deposit on a new car. The third reason is the availability of low cost finance and innovative new financing products, and this is where things get interesting.
INNOVATIVE FINANCE OPTIONS
Just a few years ago, leasing was something that was little understood and mostly confined to business users. We can see from the rising popularity of car leasing in Leicester that this is no longer the case. People are now coming to understand that leasing is a great way of avoiding the biggest cost of motoring, which in many cases is that of depreciation. Now sites like totalmotion.co.uk are offering low cost packages that bring these benefits to private motorists.
These personal leasing options mean that motorists are really only paying for the difference in price between the new car and the car’s value at the end of the term. This can allow them to own a more prestigious model and avoid the pitfalls of driving an ageing car. It is clearly a trend that looks set to continue.