Most new Used cars: Purchasing a used car may leave a cars come with a smaller hole in your bank account initially but it factory warranty may be harder to find exactly what you want. It and some oer is possible to retrofit some of the mod cons to a used car, but more often than not it becomes less capped-price important once people find out the price. servicing ‘If you’re buying through a dealer who’s offering add-ons, read the fine print carefully so you can really weigh up whether it is genuinely adding value,’ Damien says. Warranty and servicing s: Most new cars come with a factory New car warranty and some offer capped-price servicing. This can make budgeting for your servicing costs much easier. It also removes a lot of uncertainty and provides peace of mind that if something does go wrong it’s not going to cause a disastrous financial fallout. Used cars: While some dealers offer a warranty on their used cars, it’s usually basic cover. ‘Either way, when you take your car in for a service, you don’t know whether it is going to cost $300 or $3000. That can make budgeting difficult,’ Damien says. Depreciation New cars: Everyone knows new cars generally lose value as soon as they’re driven out of the dealership. Both luxury and mid-priced cars retain about 50 per cent of their original value after five years. ‘Do your research on the lifecycle of the model you are looking at. Most manufacturers release a new model every five to six years. When that happens, the previous model may drop 20 per cent of its value almost immediately,’ Damien says. Used cars: Used cars obviously still depreciate but new to used you’re generally buying the vehicle after the big dropin value. This creates opportunities in the used carmarket. A one to two year old car that still has its manufacturer’s warranty hasn’t lost its appeal but may have lost some of its original price. Finance Whether you are looking at There’s a lot to consider when it comes to Before you look into new or used, there’s still one choosing whether you want a new or used important factor to consider – will you buy or lease buying a new or used car, car – image, gadgets, safety, fuel efficiency the car. Finance arrangements vary for new and it’s important to consider – the list goes on. But when you focus on used vehicles so it’s important to speak to an all the associated costs. it from a purely financial perspective, Damien Bury expert. asset finance associate says, ‘the financial impact stretches beyond the initial purchase price to the Call the finance specialists at HIA Vehicles today running costs and the residual value when it comes on 1300 650 776 to discover the best options to time to sell or trade in’. suit your lifestyle. Purchase price Vehicle and asset finance, sourcing and other services are provided New cars: You generally pay more for a new car. by Macquarie Leasing Pty Ltd ABN 38 002 674 982 (Australian Credit Licence 394925) (Macquarie Leasing). HIA Vehicles is a registered trading Only you can decide whether it’s worth paying name and business name of Housing Industry Association Limited ACN more in order to choose exactly what you want. 004 631 752, and Macquarie Leasing is licensed to use such name and other trademarks. If your new car is over $65,000, you’ll pay Any information or advice contained in this article is general in nature, is 33 per cent luxury car tax. If you choose to go not an expression of opinion or recommendation, and has been prepared without taking into account your objectives, financial situation or needs. green with a diesel, hybrid or electric car, you may Before acting on any information or advice in this article, you should consider the appropriateness of it (and any relevant product) having receive both financial and environmental benefits regard to your circumstances and, if a current offer document is available, with the luxury car tax only applying to ‘green’ read the offer document before acquiring products named in this article. vehicles over $75,000. You should also seek independent financial, accounting and tax advice prior to acquiring a financial product. SEPTEMBER 2018 HOUSING 97 BUSINESS • MEMBER BENEFITS