DIY Investor - The Do-It-Yourself Investing Blog

Whether we choose to spend our hard-earned money on jewelry, exotic holidays, or eating out, we all like a bit of luxury in our lives.

Purchasing a brand-new car is one of these luxuries enjoyed by many. Although lots of people still opt for used cars, there remains a clear trend towards people buying new.

In 2019 alone, 2.31 million new passenger cars registered in the United Kingdom, proving that the demand is clearly still there. So, what’s the appeal? And why are so many of us opting for new cars over used models?

New technology

It can certainly be hard to resist new gadgets. Technology is now one of the key features considered when we buy a new car. But, what gimmicks are we most sold on?

Once, we were completely reliant on physical maps. Nowadays however, sat navs are built into our vehicles and offer to plan our route for us, sending us the quickest way thanks to real-time traffic updates.

‘the introduction of dashcams has become increasingly popular – especially in a day and age of ‘where there’s blame, there’s a claim’

This has made the little old book of maps pretty much obsolete and taken the pressure off us needing to think of the best route when we hear about any delays that come over the airwaves.

Modern technology is also helping t improve road safety. Driver-assist systems use different camera combinations and sensors to keep track of those dangers you may not immediately notice, such as the car in front of you braking suddenly.

Not only this, but the introduction of dashcams has become increasingly popular – especially in a day and age of ‘where there’s blame, there’s a claim’.

Most certainly, technology has played its part to reduce the stress of driving. Innovations such as adaptive cruise control, LED headlights, lane departure warnings and rear cross-traffic alert systems, and our cars really all help in this way.

While many of us still opt for used cars, there’s an undeniable excitement around new cars which looks to be on the increase again!

Finance options

The price tag of a new car can sometime come as a staggering surprise. With a cost that sometimes matches your yearly wage, owning your dream car can seem like a pipe dream.

However, for many it’s a dream that they simply can’t give up on. With the opportunity to lease a car, purchase a car on finance, or take out a PCP agreement, you really can drive your ideal car home today.

‘you really can drive your ideal car home today’

Car finance can help you out with 80% of new cars sold in the UK today. Whether you have a good credit score or not doesn’t usually affect your chances of being accepted for car finance either.

It will, however, increase your payback amounts. But, if you have a good credit score, you really can receive payback amounts and interest rates low enough to not affect your everyday. Used Mercedes c class deals, for example, can allow you to take home the car for around £630 a month.

In all, car finance is 30% of all consumer debt, according to the Bank of England. However, for many, a car is seen as an essential part of everyday living, so it is a necessary debt.

Lower emissions

In the current state of climate emergency, the UK is focusing on lowering emissions in any way possible.

Unfortunately, older models of vehicles aren’t the most environmentally friendly.

Newer cars have been regulated and produced in a way that it would take 50 of today’s cars to produce the same amount of air quality pollutant emissions per kilometre as a vehicle that was produced in 1970.

‘your road tax will now increase depending on your car’s level of emissions’

This is due to the regulations that have been put in place at a European level over the last 20 years regarding emission limits.

It is essential that new vehicles must meet the Euro 6 standard that was established in 2015.

This new standard has a heavy focus on the permitted level of NOx that a car can emit. For diesel cars, the permitted level has been slashed from the 0.18g/km allowed in Euro 5 to 0.08g/km.

As well as helping the environment, this option will also benefit your finances. The amount you pay for your road tax will now increase depending on your car’s level of emissions. Also, did you know that different cities around Europe are imposing charges for higher emitting vehicles? For example, the T-charge that was rolled out in London last year is a charge that motorists must pay on pre-Euro 4 vehicles driven into the UK’s capital.