Many motorists ponder whether to buy a new or second hand car, and while the temptation to splash out on a brand new model is there, it isn’t such a wise choice. Here are five reasons why buying a used car makes sense.
- Save a lot of money
By far the biggest reason to go second hand is the massive savings. A new car loses between 5- 11% the moment you drive it out of the showroom, and it will further depreciate over the first year, as much as 20%. With careful selection, you can find a car that is perhaps one year old, and is still in pristine condition.
- Minimise depreciation
The first two years of a vehicle’s life sees the most depreciation in value, and this flattens out until about five years, so if you buy a used car that is 18 months old, the depreciation will be minimal. If one is a shrewd buyer and has a little patience, it is possible to resell a used car for more than you paid, giving free motoring. Some people manage to make a profit buying and selling used cars, so there is money to be made, if one knows what to look for in a used vehicle.
- Cheaper insurance
Insurance premiums reflect the value of the vehicle, therefore a used car will be cheaper to insure, which saves you even more money. A new car might cost 50% more to insure, and with the right insurance company, there are deals to be had.
- A wider choice of models
Buying a new car limits you to the available makes and models of the day, whereas with used cars, there is a much wider choice. You might have your eye on a classic make and model, and if you spend some time looking, the right car will come along. If you are in Australia, and looking for used cars in Canberra, there are dealers with amazing vehicles at reasonable prices.
- Used car warranty
If you are thinking of buying a second hand vehicle, it makes sense to go to a reputable dealer, rather than buying privately, as the dealer will guarantee the vehicle for a period of time. An established used car dealer will ensure that all the vehicles are in first class condition before putting them up for sale. This gives the buyer added confidence, and with so many dodgy cars on the market, it makes sense to buy from a registered dealer that specialises in the particular make of car you are interested in buying. There are Toyota dealers with a range of used vehicles at reasonable prices, and with a range of demo cars, there is a wide choice of quality vehicles, all well-maintained and ready to drive away.
A good quality used car has all the benefits of a new vehicle, at a much lower price, and by using a reputable dealer, you can be sure the car is in good condition, and will give you many years of trouble-free motoring.