Many motorists dream of buying a brand new automobile and enjoying the luxury of being its first owner, but this is not all it’s cracked up to be. Financially, it is much better to opt for a second-hand vehicle and not only because it will come with a lower price-tag. These are the financial advantages that you get by opting for a second-hand car:
Cheaper to Buy
Buying a brand new automobile will cost an absolute fortune. Instead, it is much better to shop for the same model but one that is around 3 or 4 years old – this will cost a fraction of what the original price was (more on this below) and can still feel brand new with a little work and effort.
Depreciation
Following on from this, the value of a new automobile rapidly decreases the moment that it is driven off the lot. After just one year, this drop in value could be as much as 35%. Therefore, buying a used car allows you to sidestep this enormous financial hit if you look to sell the car on later down the line.
Write-Off Payout
Another area where depreciation can take its toll is if you were to have the automobile written off. In this situation, your insurance company would only pay out what the automobile is worth at the time and not when you purchased it. This could leave the owner of a brand new automobile seriously out of pocket. It is hoped that you will never experience this, but accidents do occur and it may not even be your fault. GAP insurance is the best way to protect yourself from this.
Options
The used car market is gigantic and this means that you should be able to find a great deal on the vehicle that you are after. Online used car dealerships like AA Cars are a great place to look and many places like this offer finance options, as well as a free history check for complete peace of mind.
Insurance
Second-hand cars are, usually, cheaper to insure because they are not as valuable. There are various factors that are considered to determine an insurance premium, but you may find yourself paying a lot more if you purchase a brand new car.
Overall, it makes a lot more financial sense to buy a second-hand automobile than a brand new one. The main reason for this is the rapid drop in the car’s value, but opting for second-hand brings various other benefits too. It is an enormous market and this means that you should be able to find the perfect car for your needs for a reasonable price.
