Can Buying A Used Car Save You Money?
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There’s no denying that cars can end up costing us a lot of money. Most of us need them though, for work, for socialising and even just everyday chores like getting into town to do the weekly shop. This can be especially true if you live in a rural area with limited transport links.
Can Buying A Used Car Save You Money?
If you’re looking to purchase a new vehicle but are concerned about the costs, taking a look at used cars could be the answer.
Even better, buying a used vehicle, instead of a new one, could actually save you a lot of money.
While some might argue that buying a new car is best in terms of dependability, as long as you buy a good quality used car, this shouldn’t be too much of an issue as most vehicles nowadays are built to last a long time.
Cars are continually evolving and even cars that are five or six years old are far more reliable than they might have been twenty years ago.
Used Cars Depreciate Less
One of the biggest pitfalls of buying a brand new car is how much they depreciate.
This depreciation starts the second you drive the car away from the forecourt and continues at a phenomenal rate for the first few years of ownership. Depreciation can be as much as 30 – 40% in the first year and a further 10% in the following two years.
Second-hand cars have usually passed this extreme level of depreciation so will hold their value much better should you decide to change your vehicle in a year or two.
Look out for vehicles that are three to five years old as this is often when those who purchased from new trade them in for an upgraded model but the level of depreciation has slowed down, making them great value.
Cheaper Insurance
Generally speaking, you’ll find insurance is much cheaper for a second-hand or used car, as the insurance company won’t be forking out as much should you be involved in a road traffic collision.
Used cars also make the perfect choice for young and inexperienced drivers, who are statistically more likely to have some sort of accident. Insurance premiums for seventeen and eighteen-year-olds are eye-wateringly high so choosing a second-hand vehicle can be a great way to help lower these.
Buying Second Hand Means You Can Buy Better
Have you thought about the fact that buying a second-hand car could mean a better quality vehicle?
Choosing to buy secondhand could mean you can afford used, premium vehicles that may have been well out of your budget when buying new.
While brands such as Mercedes and BMW do hold their value well, if they were never in your price range brand new, you might be able to find them at a more affordable price purchasing second-hand.
Tips For Buying Used Cars
Finally, I thought I’d share with you a few tips for buying secondhand.
Private Sale Vs Secondhand Dealer – While private sales are often much cheaper, there is often no recourse should something go wrong with the car. Buying from a trusted used car dealership will give you a good warranty and peace of mind. Some dealers even give you the option to extend your warranty further for an extra charge.
Always View In Daylight – Always try to go car shopping in daylight and in good conditions. Rain and poor light can mean the car’s faults are harder to spot.
Check Tax & Insurance – Double check the cost of tax and insurance before you buy rather than getting hit with an unexpected price jump after committing to the purchase of your vehicle.
While there can be the occasional pitfall to buying a second-hand car, overall it should save you money, with less depreciation and significantly cheaper insurance.
It’s also a great option if you want to move away from continually having a car on finance and feeling like you never fully own your vehicle.
Every car I’ve ever bought has been second hand and that’s not something I can see changing any time soon!
