There was a time when it was considered that people bought used cars as they cannot afford to buy a new one. But not anymore, people are finding so many benefits of buying a used car that earlier perception is vanishing. Sure, a fancy new car is eye-catching, but apart from that, there are not many reasons for purchasing a new car. For example, in the UK used cars sales have shot up in the last few years owing to the many advantages it has as per reports published in www.telegraph.co.uk.
Apart from the enormous savings that you can make by buying a used car, there are many more benefits to be had, some of them are listed below.
Better pricing: It’s great to own a car that is new, and no one has driven. But after using the car for a few weeks, all that euphoria dies down when you have to pay your monthly EMI’s. Moreover, a new car does not come cheap, add to it the fancy accessories, the gap in pricing between the new and used cars increases.
Most people will be opting for a car loan, and compare the rate of interest is a little lesser for a new car than a used car. But if you consider the overall cost of owning a new car, the used car works out to be way cheaper than a new one in spite of paying a higher rate of interest.
Benefits of depreciation: The value of a new car depreciates quicker than an old one. Most new vehicles depreciate close to 30 percent in the first year itself, add to it the normal wear and tear. The same cannot be said about a used car as there is no depreciation. Moreover, you need not worry about the GAP insurance coverage which you would otherwise have to take for a new car which is an added cost.
The savings you make by buying a car which is a year old is significant and to top it you get a warranty covered too. With those savings, you can pay off your loans faster than when you buy a new one.
Payless on insurance and other fees: Some taxes and charges are unavoidable when buying a new or a used car. But there are additional random fees which can be avoided when you buy a used car as it will be already paid by the first owner thereby saving a few hundred dollars.
Insurance rates also vary based on the car’s age. A new car means that the money you pay for insurance is more than that of a used car.
Used cars these days look as good as new, unlike in the earlier years were a used car looked like junk. There are many pre-checks done on used vehicles to determine the condition of the vehicle. You can search for cars which are in excellent condition from dealers who have cars which are certified and comes with a warranty from the manufacturer. So, do a thorough research before deciding to buy any car.