Pros and cons of buying a car in December – TopAuto
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Monday / 17 January 2022
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Pros and cons of buying a car in December

There are many pros and cons to buying a car in December, according to insurance company Naked.

Ernest North, cofounder of Naked, said there are compelling arguments either way when you are looking to buy a new vehicle.

“The most obvious reason to wait if you’re buying new is that you’ll be able to buy a 2022 model, which massively affects your resale value. But that’s not the only factor to consider,” said North.

Naked provided their list of arguments for and against buying a new car in December, below.

The pros

The arguments for buying a car in December are:

  • Pick up a bargain – many car dealers are under pressure to meet targets and move stock off the floor before it’s devalued by the ringing in of a new year.
  • Use a bonus as a deposit – if you’re getting a 13th cheque, you could use it towards your deposit.
  • Potential for lower insurance – buying a 2021 model now means a lower insurance premium than driving a 2022 model.
  • Buy a 2022 model in 2021 – you can often, but not always, buy a car in December and only register it in 2022 to improve the resale value.
  • Car prices may rise in 2022 – as car manufacturers make their 2022 models available, they’ll inevitably hike the prices.

The cons

The arguments against buying a car in December are:

  • Good deals early in the year – if you’re considering a used vehicle, many private sellers are under pressure early in the year and might offer an attractive price to secure a sale.
  • Clearer view of your financial situation – if you’ve splashed out on an expensive holiday, your financial resources may be under pressure.
  • Remote work – your employer could decide to extend work-from-home policies, or the government can introduce new restrictions to manage Covid-19.
  • Rising petrol price – you might want to hold on if you were going to buy a petrol-guzzling SUV. Take the time to think about whether you really need it.
  • A car isn’t an investment – paying off debt or keeping your money in an interest-bearing account is almost always smarter than buying a car.

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