Are you looking for a new car? Before you dive in at the deep end and buy a shiny new model from your local dealership – and we know the temptation – consider the following five reasons why you might want to but a used car instead.
Depreciation – when you buy a brand-new car, the moment you drive it away from the showroom it begins to depreciate in value. Some experts give the instant depreciation as 20% – that’s as soon as you drive it away – with an extra 10% in the first year of ownership. So, after one year, your new car is worth 30% less than you paid for it! The trick is to look for a car just over two-years old, for the best value for money.
More for Your Money – it follows, then, that if you buy a car that is two or three years old, you will be able to get a lot more for your money. Whereas you may only be able to afford the ‘basic’ spec when buying new, you should find the same model with a wealth of extras and a higher specification for a lot less money. Look around for the right car and you will get what you really want.
Finance – It’s cheaper to get finance on a used car that it is a new car. This is usually because the overall cost of the vehicle is cheaper. There are companies out there such as Berglund Credit who can help you get finance no matter what your situation is.
Cheaper Insurance – it makes sense that the less valuable the car, the lower the insurance costs will be. This is because overall value is one of the most influential of all factors that insurance companies take account of. Also, with an older car, you may be able to do without some conditions that add to your insurance costs. Check with your insurers for advice, and always shop around for the best deal.
Lower Registration Fees – It is worth checking out in detail the cost of registering a car in your home state. In many states, this fee is based on the cost of the vehicle – that you pay to the vendor – so buying used and cheaper means you won’t pay the highest registration fee.
VIN Check – there was a time when buying used meant taking a risk; today, there is no more risk with a used vehicle than with a new one, thanks to modern consumer protection laws. You can get a detailed report on the history of every vehicle using the Vehicle Identification Number (VIN) from companies such as Carfax and AutoCheck. This is subject to a small fee, is quick, and gives you everything you need to know about the life of your car. If you buy a Certified Pre-owned car it will have been inspected to meet the manufacturers quality requirements, and you will also get a warranty.
Also, modern cars last longer than cars used to; 100,000 miles is nothing for a well-kept two or three year-old car. Plus, your used model will most likely look like a brand new one, as manufacturers no longer change the shape so often.
It’s worth considering buying a used car, so have a look around for your dream wheels at a price you can afford.