When it comes to getting your next car, many people think the only way to go is to get a brand-new model. It’s true that there can be no better feeling than slipping into a brand-new model with that new car smell. However, for many drivers, brand-new cars are far too expensive to buy outright and could only be obtained on finance with a good credit score. If you’re in the market for your next car, you should consider a car on the second-hand market. There are so many benefits to buying a used car and you’ll not be short of makes and models to choose from. The guide below has been designed to explore how a used car can benefit your lifestyle and your pocket.
Should you buy a used car?
If you want to get a car but still want to keep costs low, a used car could be your best bet. But there are so many other reasons to invest in a used car. Used cars have a lower purchase price and if you want to finance a used car, it can be easier to get bad credit finance too because the loan amount is lower. Agreements such as hire purchases are a form of secured loan which means the lender owns the car until you have made all your payments. This helps to reduce the risk to the lender and can make it easier for you to get approved. Used cars can also benefit from slower depreciation rates which means your car doesn’t lose as much value while you own it.
Benefits of getting a used car:
1. Lower purchase price
When it comes to budget and affordability, used cars can be the cheapest option for you. Whilst is can be true you can get a brand-new car with low monthly payments on PCP, these rates can usually be reserved for those with good credit so may not be accessible to everyone. A lower purchase price makes used cars more affordable for many people and you can benefit from some of the cheapest used car finance rates around. A cheaper price doesn’t have to mean a car that’s on its last legs either, anything after 1 year of ownership can be classed as a used car and still be in supreme condition.
2. Slower depreciation
One of the biggest drawbacks of buying a brand-new car is the amount of value they lose. This is known as the depreciation rate and refers to the difference between a car’s value when you buy it and when you come to sell it. Depreciation differs between different makes and models, but some brand-new cars can lose up to 50% of their value in the first few years of ownership. After 3 years of manufacturing, the depreciation rate tends to slow so buying a used car after this point means your vehicle holds its value better and you won’t be impacted as much when you come to sell it.
3. More availability
If you’re after a car in a hurry and want plenty of choices, it’s a no-brainer that used cars can be best for you. Brand-new cars can have long waiting lists, and many have suffered ongoing manufacturing delays after the 2020 pandemic. There is also so much choice to be had on the second-hand car market. If you’re struggling to choose a make or model that’s right for you, it can be beneficial to tested drive a range of cars in your budget to help get the used car that’s perfect for your circumstances.
4. Cheaper to insure
When it comes to insuring your vehicle, it can be cheaper to insure a used car over a brand-new car. If an accident occurs, used cars usually cost less to fix and have an overall lower price which makes them cheaper to insure. However, you can also get a good insurance deal on a new car too. There are also other factors that affect your premium and insurance rates also tend to be more expensive depending on your age and experience. Being a newly qualified driver can increase your insurance premiums as you are more likely to make a claim in the first year of driving. It can be worth comparing insurance rates on different cars to help save you money before you commit to getting the car you want.
5. Longer used car warranties
For a long time, getting a used car meant that you didn’t get the added peace of mind with an included warranty you do on a brand-new car. However, there are many manufacturers who now offer long warranties on their new cars that can be transferred with ownership. Many manufacturers offer warranties of up to 3 years, but Kia now offers a 7-year warranty and Toyota has taken it even further and given you a massive 10-year warranty! This means you can benefit from a cheaper used car that’s still protected by an extended warranty.