To buy or not to buy a new car in 2021 – indicators for the road ahead

Published on 2 January, 2021

Overview

Some people have already decided they are or they are not going to buy a new or newer car in 2021.

With such huge uncertainty around, many have put off the decision for now.

To help put something of a focus on Buy/Don’t Buy, here are seven reasons to get into a new model – and seven reasons not to.

BUY
1. If you buy in 2021, you will have to pay less to change a car than if you wait another 12 months when new car prices will have risen and your car will have lost proportionate value.

2. It is a cliche, but there are likely to be some really good deals out there in the early part of the year.

Dealers don’t want a repeat of 2020 when sales plummeted. It could be a buyers’ market without parallel.

3. New/newer cars are safer and more environmentally friendly, which means you and your family are better protected all round. Any time is a good time to buy when you can add another layer of safety for your family.

4. Money is cheap, ridiculously cheap, so repayments will be low, relatively speaking. Personal Contract Plans especially make use of a new car far easier than years ago.

5. There is a scarcity of well-kept trade-ins, mostly due to sluggish new-car buying over the past three to four years.

If your’s is looked after, you could get a premium price against a new one. This is an apparent contradiction of No.1 above, but I want to make the point that your new purchase may not cost as much.

6. If you have doubts about the safety of using public transport due to the risk of Cove-19, a second family car makes sense. It takes on its own logic if you need more room for a growing family or to accommodate young learner drivers.

7. What’s wrong with enjoying the fruits of your endeavours and then savouring the feel-good factor of a new car in your driveway? You’ve earned it.

DON’T  BUY
1. What’s the rush to splash thousands of your savings/borrowings when you are not sure how things might pan out with the virus?

Who knows what the economic impact will be in the medium term on jobs, taxation, lower earnings and take-home pay? All of which should ring alarm bells about taking on such a major outlay.

2. There may be even better deals for 2022. Maybe your car is so old now that it can’t lose any more appreciable value.

On the other hand if it is relatively new and in pristine condition, it will still hold its worth because of the shortage of good second-hand vehicles out there.
3. New-car prices, especially electric vehicles and plug-ins, could be less expensive again in 2021, as increased production lowers the individual cost of each car.

4. Public transport will return to a safer status as vaccines reduce the risk and spread so hold on: maybe you don’t need a second car to cope with the current threat. You may also be working from home for a long time now we have learned how to do so. No point in having another car soaking up space and outlay.

5. Experts anticipate a burst of pent-up demand for new cars in 2021 so, maybe prices will not be as attractive as we might think.

6. You’re thinking of buying electric with your next purchase but don’t feel what you want is quite here yet. So what’s another year?

7. You’re a bit sensitive about having a sparkling new car in the drive while some of your friends and neighbours are worried about holding onto their jobs.

And remember
· Weigh things up carefully and make sure to ‘stress test’ your ability to meet repayments if you are going to buy new. Allow for exigencies like reduced income or big household repairs.
· If buying second-hand, always deal with a reputable dealership that has backup and support for when things go wrong.
· Make sure you shop around vigorously for the best car, and best finance deal on the market. It could save you hundreds, possibly thousands, of euro.