Making a car purchase is a tough decision. Aside from taking budget and functionality in as considerations, prospective buyers should also take the time to test drive and study the fine print to make sure they’re really making a good purchase.
Typically, buyers eye brand-new cars to feel reassured that they are getting a factory-fresh model with zero defects. However, second-hand cars aren’t always a bad idea, especially if the vehicle has been well-maintained. Here are some good reasons to consider buying a second-hand car:
1. Budget breather
A brand-new vehicle is a depreciating asset – or honestly, a liability. It comes with a huge financial commitment to pay the hefty amortization, ballooning interest rates, expensive insurance premiums, and steep car maintenance. Therefore, prospective buyers who want convenience without breaking the bank can hit two birds with one stone by buying a second-hand car.
Second-hand cars have lower price tags than brand new ones. This means you can buy a certain model for a price that is at least 15% lower than the price of a new one. Just make sure to inspect the car thoroughly and do a test drive. Also, it’s best idea if you know the previous owner or go to a reputable trade-in centers so you won’t have problems with repairs or parts replacements in the future.
2. Less worries on vehicle devaluation
The moment the vehicle is bought and drove from the retailer, the car’s value dips instantly – and continues to lose its value for each and every mile. Some models can even lose as much as almost half of the value in just the first year. Used cars, on the other hand, don’t depreciate as quickly.
3. Peace of mind
New cars are more attractive to thieves, which is why carnappings are always a source of worry for their owners. Aside from being less of a target to theft, a minor scratch or chip on a second-hand car won’t bother you as much as it would if you had a brand-new car.
4. Favorable insurance rates
Insurance premiums for used vehicles are more affordable. We should mention, however, that if the vehicle is very old it could be difficult to insure. Do some research on the basic insurance rates for used cars to know the exact amount of coverage you will have and how much you’ll need to shell out.
5. Low cost-to-resale ratio
If your car is well-maintained, you can sell the used car for a price that is close to the price you originally bought it for, should you decide to resell the future. Some owners even have the auto-repaired and detailed before selling it to get a better resell price. This means you may be getting an old car, but you’re getting one in relatively good shape at an affordable cost.
6. Serves your specific taste and needs
Always wanted to try your hand at vintage restoration? Perhaps you are a car enthusiast looking for a specific engine type? There’s no other way to indulge these fancies other than to buy a second-hand car. You can take your time to look for just the right model and make you’ve always dreamed of.
If you’re settling for a second car, keep in mind that safety comes first. Take a test drive and have the engines, brakes, and wheels checked. Also, get an insurance premium for a worry-free driving.
Sources: Carmudi, Top Gear Philippines, Smart Parenting