Contrary to popular belief, new does not always mean better. This principle also applies to cars. In the process of buying one, remember that you have several options available to you—not just going for brand new.
Your car is a valuable asset that will be serving you for the long term. Your primary concern in making this decision is the budget you can allot into paying for and maintaining it. In this case, purchasing a secondhand vehicle may be the wisest decision for you.
Take your time and carefully weigh your options. This is a significant life decision that will affect your finances for years to come.
Benefits of Buying Secondhand
There is the apparent benefit of possibly getting a larger, fully-functioning car for a much lower price. In addition to this, there are also a few other reasons why buying a secondhand SUV may prove better than a brand new sedan.
Avoiding Depreciation Costs
One of the biggest advantages of buying a used car is avoiding depreciation costs that come with purchasing a brand new model. Any new car model quickly loses around $2,000 to $3,000 in the market after its first uses. It will continue to lose value as long as it is in use.
If you buy a used model, you steer clear of this loss entirely. This opens up the possibility of selling your car for a price closer to its purchase value in the future if it is well-maintained. Buying a second-hand vehicle saves you a significant amount of money, especially if you cannot spare those few thousand dollars.
Lower Insurance Rates
Insurance providers have policies to cover both new and used cars, so this should not worry you beforehand. Depending on your car’s assigned value, you may be able to avail lower rates compared to a new car. Lower insurance payments may be beneficial for young professionals who will not have as much disposable income as others.
However, this means your insurance will cover the “depreciated price” of your car. Meaning, if your car is totaled in an accident, your insurance policy will only answer for the car’s depreciated value in finding a replacement.
Unique Models
Many car enthusiasts are interested in restoring vintage car models. Secondhand purchases allow you a broad spectrum of options from a variety of manufacturers. Being open to vehicles in different conditions can give you access to special models that may not be in the market anymore.
Disadvantages of Buying Secondhand
While a secondhand car saves you money upfront, it may come with its own setbacks. These are the possible cons of purchasing a secondhand car that you should be prepared for.
Car Condition
Natural wear and tear comes to any car that is regularly driven. This means buying a secondhand vehicle may require more frequent maintenance checks and repairs to keep it in working condition.
A workaround to this risk is going to certified auto dealers who sell high-quality used models. You can also directly inquire with friends who are selling, as they can lay any vehicular issue on the table before making a purchase price agreement.
Lack of Warranty
The warranty of a car only lasts approximately three to five years, depending on its manufacturer. First-time car owners, in particular, will have better peace of mind with a fresh warranty. Warranties answer for material faults or car issues that happen separate from an outside stimulus.
However, if you purchase a used car around three years old or younger, it may still come with its original warranty. Check the warranty details of the car you’re getting to be clear on this.
Considerations Before Purchasing
Purchasing a secondhand vehicle comes with its own pros and cons. Still, it remains a preferable option for those seeking quality models on a budget.
Maintain a certain level of flexibility during the process of choosing a car. For example, a certain model may offer better mileage and specs, though not in the color you prefer. Think long-term and consider the value for money each step of the way.
Do your own research, too, to be aware of any issues associated with the model you are eyeing. If you are a new buyer, you may also want to get a second opinion before making a final decision. In the end, the goal is to choose a car that is the most practical for the least expense.
