Purchasing a vehicle is a very big outlay and investment for many people and also can be a very daunting process, especially for the inexperienced. When you purchase a vehicle, you want something that is suited to your needs, comfortable, and safe but you also want something that is affordable and within your budget. With this in mind, there are lots of people who decide not to spend loads of money on a brand-new vehicle and opt for a used vehicle instead.
If you do decide to opt for a used vehicle, you can look forward to a range of benefits but you will need to be aware of the potential pitfalls. You need to ensure you get the used car properly checked if you are purchasing from a private seller or that it comes with at least some warranty if you are buying a used vehicle from a dealership. Now, let’s look at some of the main benefits that come with buying a used car rather than a new one.
- Less of a Hit on Depreciation
When you purchase a brand-new vehicle, you lose a huge amount as soon as you drive it away from the dealership. In fact, you could lose thousands of dollars once you drive the vehicle off the forecourt because of depreciation. You do pay a high premium for being the first one to drive the car away and experience the smell of a brand new car.
When you purchase a used car that is still relatively new with the balance of warranty and low kilometres, it can take away the hassle of new car ownership. Hassles like all those little niggles and problems that can still pop up with a new car and even early model recalls. Someone else has taken them back to fix at the dealership under the new car warranty and saved you time and the inconvenience of having to deal with the problems.
When you purchase a used car, someone else has already taken the hit on the value so you won’t have to worry about it. Of course, the vehicle will continue to drop in value as it gets older and the mileage gets higher, but you won’t lose anywhere near as much as the person who first purchased it. A car can suffer the most hit in depreciation in the first 3 years of ownership.
- Lower Costs
Buying a brand-new car can be very costly, and often involved having to take out finance of some sort in order to afford the vehicle.
When you purchase a used car, you can get some great deals and very low costs. This means that you may even be able to afford to purchase the car outright with your own money, which means you won’t have to get into debt.
It also enables you to buy a higher specified used model rather than the base model of a new car that your budget may have only allowed. This can also provide the ability to buy an even safer car. Many car makers do not offer their full suite of safety features like Autonomous Emergency Braking (AEB) in base models rather these may only be available in their top range models.
Naturally, you shouldn’t purchase a used car because of its low price from a private seller until you have had it checked out for safety and condition. Incorporating a professional Pre-Purchase Inspection as part of the buying process in the private market reduces your risk exposure to potentially buying a lemon of a car.
This can give you piece of mind and also some negotiating leverage with the seller. If some minor faults are identified in essentially a good car then an adjusted price can be agreed upon or the problem can be rectified by the seller as part of the sale agreement.
- More Affordable Insurance
The cost of insuring a new vehicle can be crippling, particularly if you choose a sportier model or you are a young driver. However, when you choose an older vehicle, you can look forward to much lower insurance costs. You can also go for a more basic level of coverage depending on the value of the used vehicle you purchase. For lower valued used cars it may not be worth taking out full comprehensive cover as the vehicle the cost of the cover may come to more than the value of the car itself. Taking out 3rd party insurance in some cases may provide significant savings.
- No Dealership Fees
When you purchase through a dealership, there are often various added fees that you end up being charged for including shipping charges and destination charges. With a used vehicle, you don’t have to worry about any of this; you simply pay the amount being charged for the vehicle with no added charges to worry about.
The new and more expensive luxury cars also have additional dealership delivery fees and also luxury taxes added when purchased new. When you purchase a used car at a dealer or in the private market you no longer are exposed to these one off new car cost. So buying a used demonstration vehicle or some car which is only a couple of years old with low kilometres can provide significant price savings as these costs are no longer included with the combined depreciation of the car’s value.
More Advice on Purchasing a Used Car
If you would like more advice on purchasing a used car, get in touch with the team at My Next Car Buying Advocacy. Whether you go for a new or second-hand vehicle, our car buying advocacy services will ensure that you always end up with the right car, at the right price.