Should I Downsize My Car? - Part 2

Sometimes bigger isn’t always better, and there are many reasons why downsizing to a smaller car may be the right move for you. From significant lifestyle changes to environmental awareness and everything in between, downsizing to a smaller vehicle can provide practicality and peace of mind. The latter you simply can't put a price tag on.

Join us in this series as we explore some of these reasons in more depth.

Reason 2: Larger Vehicles are More Expensive

Generally the larger the vehicle, the more they cost to buy, to look after and to insure. First, larger vehicles are heavier making them typically less economical compared to smaller vehicles. Secondly, for a similar price, you upgrade to a brand new or nearly new small car for the same outlay as a second hand bigger car.

Fuel costs

Due to their size, smaller cars use less materials and run on compact engines. This makes them lighter and more fuel efficient. While EVs and hybrids use no or limited fuel, the purchase price of these types of vehicles can be considerably more than similar-sized petrol vehicles and if you buy one second hand, the cost of replacement batteries can be significant.

Insurance costs

As larger vehicles typically cost more to buy, insurance premiums are higher to cover the cost of damage or replacement. When you opt to drive a smaller car, the insurance costs are usually less and there’s a little more money left in your budget to spend on other things.

The cost of maintenance

One of the other main benefits of owning a smaller car is the lower cost of maintenance. Components that wear out and need to be replaced such as tyres and brakes, tend to be easier to find and cost less than those for larger vehicles. Of course, the availability of parts also plays a significant role in their affordability. For instance, the popularity of Japanese vehicles in New Zealand means there are more parts available around the country and this helps keep the price down.

Affordability of buying brand new over pre-owned

When looking to upgrade your car, you can normally buy a brand-new, smaller car for the same amount of money as a larger used car. By downsizing to a smaller vehicle, you can get the benefits and peace of mind of driving a brand new vehicle with the latest safety features, modern conveniences, and, most importantly, a full manufacturer's warranty. Also, under normal use conditions, you will enjoy minimal outlay for repairs and maintenance for the first three to five years.

As if it couldn't get any better, you can choose your favourite colour, model, and any accessories and features you want to have. It really is a win-win.

Come back tomorrow for the last part of our series about downsizing your car.