People tend to assume that buying a new car is the best option when the time comes for a change, but actually you will find that a used car is often the better choice and a smarter use of your money.
While owning a brand new car may be a luxury, there are more benefits to buying a second-hand vehicle – read on to find out what these are.
Your Money Goes Further
You will be able to get more for your money when you buy a used car, which should help you to afford a much nicer vehicle than if you were to buy brand new so you can get a higher-quality vehicle despite the fact that it is not new.
You Avoid Depreciation
Perhaps the biggest benefit is that you avoid the largest hit of depreciation. Vehicles can depreciate by as much as 35% after just one year and over 50% after three years – this means that a new car is actually a terrible investment and it is much smarter to spend on a vehicle which is over 3 years old when the rate of depreciation falls significantly.
More Affordable to Run
Another financial benefit of buying a used car is that they are usually more affordable to run. This is because insurance is usually lower as the vehicle is not as valuable, plus it is likely to be cheaper to tax due to the change in road tax regulations.
Things to Consider
While there are clear benefits to buying a used car and it is a much smarter investment, you must also consider a few things first.
This will involve conducting thorough checks so that you can avoid scams and make sure that the vehicle is suitable – this will include a vehicle history check, checking the paperwork and a thorough inspection along with a test drive.
You should also only ever buy used vehicles from a reputable supplier so that you can benefit from manufacturer-approved status and to find finance deals. On top of this, you may also need to arrange an extended warranty and GAP insurance for financial protection.
Overall, a used car is a much better investment than a new car for a handful of reasons. People often want to buy new as it is seen as a luxury, but this is not a smart use of money and instead you should always shop in the used car market but make sure that you take the right steps to find a suitable vehicle.
*This is a collaborative post