When shopping for your next car, there can be many options available to you. It can be hard to know whether a new or used car would suit you best, however, there are so many benefits to getting a second-hand car that we think it’s a no-brainer. Used cars are cheaper to buy, have more availability, there is no waiting time for the car to be built and you can benefit from cheaper tax and insurance. With this in mind, let’s take a look at the ways in which a used car could benefit your life and your pocket.
Benefits of buying a used car:
Now we’re not completely ruling out buying a new car, we just think there are so many benefits to buying a used one that can suit a whole range of different buyers.
Lower payments
One of the biggest benefits of second-hand cars is their purchase price. It can be easier to afford a used car over a new car, especially if you are buying your first car or have a limited budget. It can also make used car finance cheaper when you choose to spread the cost as the loan amount will be smaller. When buying from a private seller or dealer, you also have more room to haggle with the price as new cars tend to be a fixed cost.
More choice
The second-hand car market has been more popular than ever in recent years, with more people choosing to buy used or hand in their new car, there can be much more choice on the market. When buying a used car there’s no waiting times involved, and you don’t have to wait for the car to be built like you would with a brand-new car.
Less depreciation
When a new car is built, it can lose over 50% of its value in the first year. When you buy a used car, most of the deprecation has already happened and you didn’t have to deal with it. Depreciation is the value that the car loses from its purchase price to how much its worth when you come to sell it. Used cars hold their value better so it won’t be a huge loss when you come to resell.
More financing options
A new car on finance can be hard to obtain if you’ve been refused car finance in the past. The best finance rates for new cars can be reserved for those with better credit scores as they are less of a risk. However, getting a used car through hire purchase can be suited to people with low credit scores. This is because the loan is secured against the vehicle and if you fail to repay, the lender can use the car as collateral and take it from you. This option is a last-case resort that and you should always make sure you never borrow more than you need to.
Cheaper road tax
In many cases, second-hand cars can benefit from lower road tax. The amount you pay for your car tax can depend on a number of factors such as fuel type, engine size and the amount of CO2 emissions. Higher emissions and larger engines can see higher road tax payments to be made. To benefit from the lowest road tax, you could consider used cars registered before 2017. This is because the focus was put on cars that emit the least carbon dioxide to help reduce the rate of climate change. These vehicles can attract little or no road tax to pay.
Warranty and servicing included
For many years, only brand-new cars benefitted from warranties and servicing plans included. However, now you can get many used cars that come with a warranty from the dealer to help you out if anything was to go wrong and give you that added peace of mind. You can also help to keep your car in good shape and budget for maintenance costs when you take up a used car servicing plan from your chosen dealership. This doesn’t apply to all cars and all dealers though so it’s worth checking first.
