The Advantages of Buying a Brand New vs. Secondhand Car
Just like any other commodity, the price of cars is constantly going up. Making it harder for most of us to afford brand new cars compared to a few years before. This results in an increase in demand for second-hand cars. For some people, it just doesn’t make sense to spend millions on brand new cars if they could get one at a much cheaper price and could still get them from point A to point B.
Here we will find out whether or not it is really sensible to buy a second-hand car compared to a brand new car. This is so before you make the decision, you would be more prepared. Additionally, before you think of buying car insurance, you should read this first.
Here are the five reasons why you should be buying a second-hand car:
You can not afford to buy brand new
If you have a specific make and model that you desire in mind but you can still see it the car store window, still unused, but you can not afford it then you can opt for the next best thing. Buy a pre-owned unit sold at a much lower price. By doing this you can save from 10% up to 70% of the original price. However, you should still check some other factors such as age, mileage, and condition. When the time comes that your budget permits, you can always do an upgrade.
You prefer to pay it one time, big time
Paying interest for your monthly installments on a car loan can be annoying. This is why if you can afford to pay in lump-sum then go for it! Save yourself some headaches. You will also get to save a lot of money this way.
You preferred to use a phased-out model
If you wish to drive a particular classic model then buying brand new is not on your option. Usually, you would be competing with vintage car enthusiasts in this market.
You want lower car insurance cost
Generally, it would cost you less to get insurance for a used car. This is because insurance companies usually consider the vehicle age and fair market value. The higher the car value would mean that it is more expensive to repair its parts after a collision. However, you should still consider that some insurance provider does not accept applications for vehicles older than 10 years.
You want to resell the car in the future
Once you buy a new car, it loses up to 30% of its value as you drove it off the dealership. As for second-hand cars, it depreciates way less than the branded ones. This is one of the biggest advantages of going second hand- having the original owner take the largest depreciation hit. You may even make a profit out of it when if you have done some customization or upgrades.
Key Takeaway
Deciding whether or not a second-hand car is for you could be dreading. Make sure that you consider each aspect and do the proper research.
