The most obvious benefit of buying a pre-owned car is the price. Appealing as the thought of owning a new car may be, many of us simply cannot afford it. Second-hand cars are cheaper to buy and the previous owner has borne some of the depreciation which means that you pay less. You get to choose from a much greater variety when buying a used car and the chances of getting the make and model you want are high.
There are often hidden fees when buying a new vehicle from a dealership such as processing and advertising fees, shipping and destination fees and dealer preparation costs and you could end up paying much more than you should be. These hidden, extra costs can be avoided when purchasing a second-hand car.
One of the disadvantages of buying a new car is the rapid depreciation in value: approximately 20% in the first year and 40% after three years. However, the rate of depreciation varies depending on the make, model and popularity of the car, as well as the cost of upkeep.
Lower average prices for preowned vehicles means that you can pay for your car in cash or make a larger down payment. The higher your down payment, the lower your monthly loan amounts will be and you can put money aside each month for future car servicing.
Buy from a Reputable Dealership
It is important to buy your used car from a reputable car company for the following reasons:
- To ensure that you get value for your money.
- Safety – it is less risky to purchase from a trustworthy dealer because you have legal protection.
- A good car dealership will do all the paperwork and mechanical inspections as well as arranging the finance, advantages you will not enjoy if you buy from a private seller.
- An efficient car dealership makes it possible for you to walk in, test drive the car, purchase it and drive home with it on the same day.
- After-sales service is important and something you will not get if you buy from a private seller.
Lower Insurance and Registration Charges
The cost of insurance is usually based on the age of the car – the newer the vehicle, the higher the cost so the rate of insurance for used cars is lower. The registration fees are also lower because the cost of registration is based on the price of the car so you have more funds with which to play at Big Dollar casino.
You May Have to Compromise
You may not always get the exact colour, features or model you set your sights on when buying a used car and you may have to go with your second option instead. However, many car dealerships are willing to source your preferred vehicle. Some used cars have outdated parts which makes finding spares difficult so be sure to check that all the systems and parts are up to date. You can take a mechanic with you to check the car before making a final decision. Having the car checked prior to purchasing can save you a lot of trouble in the long run so due diligence is essential because a car is a costly investment. Being able to purchase a second-hand care is a fantastic option for first-time car owners or those who have a tight budget. You cannot go wrong if you go to a trusted car dealer and take along someone who will inspect the car and give it a thumbs up.