Buying a car is one of the biggest investments you’ll make next to where you live. Although calling cars an investment is a very loose way to describe them – cars depreciate and cost you a lot in maintenance. For many of us, a car is a necessity, it’s how we transport our loved ones, how we commute to work and it allows us the freedom to get around. If you’re considering whether to buy a brand new car or a used car, here are some reasons that a used car may be the right option for you!
1. Used Cars Don’t Suffer Major Depreciation
Generally speaking, the most dramatic depreciation happens in the first five years. Within a few years of buying a brand new car, the value has dropped substantially. This means if you buy a car that’s around five years old, it will have already suffered the most depreciation drop. This means if you sell it in a few years, you’re not going to lose too much money on the amount you paid. Some people say as soon as you drive out of the car lot then your car has already halved in value, while that’s a little dramatic there’s some truth to it. Buying cars that are around 5 years old means that you’ll still get all the benefits of a newer model car, without the chunky price tag.
2. Great Deals Online
If you’re in the market for a new or used car, you may be surprised to know that you can often find way better deals online. I wouldn’t suggest buying a car without seeing it in person and having it checked out by an authorised mechanic, but you can easily browse cars online and narrow down your search to some options you’re interested in. You can easily find a great value used Ford car, before heading along to check it out in person. Because online vendors often don’t have the same overheads as a traditional car dealership, it can be a great way to save considerable money on the cost of a car.
3. Less Finance
Where possible, I always try to avoid putting anything on finance. Not all debt is bad, but the majority is. There are some situations in life where it’s completely unavoidable to have a debt, such as when buying your first house with a mortgage. When it comes to buying a car, if you do need to use finance in order to pay for it, buying a second hand car will ensure that your financing debt is substantially smaller when compared to a brand new car. This will mean more affordable repayments, lower interest rates and the ability to pay the loan off faster, which is always a good thing.
Buying a new (for you) car is an exciting step. If you’re open to buying a used car, it can be a great financial decision for you and your family. Just be sure to have an expert check over the car before going ahead with the process to make sure there are no fundamental issues with the car. Happy car shopping!