Throughout the next decade, the automotive industry landscape is going to look very different. With the oncoming ban of new petrol and diesel sales coming into effect in 2030, traditional combustion engines will soon be a thing of the past.
Combined with groundbreaking safety features, top-notch technology and more accessibility to the electric car market, arguably, you have more buying options than ever before.
If you’re in the market for a new car, now’s the time to consider future-proofing your purchase. From investing in a make and model that holds its resale value well to considering switching to electric, there’s a lot to think about.
Future Proof your New Car – Weigh up your options
Depreciation is a certainty. While some cars’ value will drop significantly due to their make and model, others, such as Volkswagen, retain a better resale value than, say, a Ford. But, the point remains. Most vehicles will lose between 15-35% within their first year and up to 50% or more over three years.
So, you really need to weigh up your options.
New cars give you better access to manufacturer warranties, five star NCAP safety ratings, and more choice in terms of colour, trim and engine size – particularly if you opt for car finance to buy your motor. But, as cars lose most of their value within the first three years, you’ll be hit with the costs of depreciation.
However, to dodge the depreciation bullet, you can pick up a relatively new second hand vehicle that boasts low mileage for a fraction of the original price. Plus, you may get the remaining few years of the original manufacturer’s warranty included.
As vehicles age, it’s worth remembering that repairs and expenses tend to become more commonplace. So although you may have grabbed yourself a bargain in the first instance, used cars can cost you more in the long run.
Future Proof your New Car – Consider car finance
One of the simplest and most affordable ways to future-proof your vehicle is to buy it with car finance. Not only does this give you more choice, but it allows you to pay in low fixed monthly instalments so you can get your hands on the latest models without breaking the bank.
But more than that, if you choose a Personal Contract Purchase (PCP) loan, then the lender works out the Guaranteed Minimum Future Value (GMFV) of what your car will be worth at the end of your loan term. Unlike other loans, unless you choose to pay off the total value of the vehicle with the final “balloon payment,” then you’ll never own the car outright.
However, PCP allows you more flexibility to change your car more regularly and dodge depreciation at the same time.
There are numerous ways to finance your next motor, from personal loans to Hire Purchase and leasing. What’s more, bad credit car finance is available for those struggling to get accepted. Whether you’re self-employed, have a CCJ or default or have faced bankruptcy, these specialist lenders will look at your individual circumstances and help you get the loan you need.
Future Proof your New Car – Time to go green?
Whatever you feel about electric vehicles (EVs), the shift in the motoring industry spurned on by global governments and, of course, the UN is in full swing. London’s pioneering Ultra Low Emission Zone (ULEZ) is a prime example of the cost of emissions.
No longer can drivers freely drive through the city (with the exception of the Congestion Charge!). Instead, motorists can face a £12.50 daily charge to travel within the ULEZ zone if their vehicle doesn’t meet the required emissions standards, and the emissions taxes don’t end there. Clean Air Zones (CAZ) will soon be commonplace up and down the country.
Then you need to think about the cost of fuel itself. Since the UK faced its recent fuel crisis in September 2021, petrol prices have soared past the £1.40 per litre mark – the highest in a decade.
On average, a fully charged 40kW EV battery will cost no more than £4.80. Over 200 miles that will set you back roughly 3p per mile, whereas petrol for the same distance averages 9-12p per mile.
So not only will your EV reduce CO2 and NOx emissions, improve air quality and help the environment as a whole, it’ll save you about £1,000 on fuel per year too.
Future Proof your New Car – But, what about EV infrastructure?
EVs are the future of motoring; it’s a simple fact. With big-name brands such as VW aiming to sell 70% all-electric by 2030, Jaguar all-electric by 2025 and even Lotus aiming to sell only electric models by 2028, there will come a time when the traditional combustion engine will only be remembered through history.
But, what about EV infrastructure. Even to the average Joe, it’s clear that there are not enough accessible charging points to cope with the growing demand, and with the UK government working towards the 2050 net-zero emissions deadline, this needs to change.
However, if you look at the figures, the infrastructure is steadily growing. Between 2018 and 2020, EV public charging infrastructure doubled from 11,083 to 20,961 points, and the country saw a surge in charging locations from 6,669 in 2018 to 13,861 by the end of 2020.
To increase numbers further, the Department for Transport (DfT) has a new £950m fund to support both the private and public sectors to install new EV charging infrastructure – aptly named the Rapid Charging Fund. With moves to support the rural parts of the country too, this is a gamechanger.
With more and more EV owners opting for at-home charging points, you can “re-fuel” your battery overnight when electricity rates are at their lowest and travel with peace of mind the next day.
One thing is certain: the future is unavoidable! Changes are coming to the motor industry that are ultimately going to change the future of driving for good. So, will you choose to go electric or stick to a traditional combustion engine?