Five reasons why buying a used car is the smarter choice
There is lots of coverage in the media at the moment about the continued rise in new car sales. New car sales have been increasing for 29 consecutive months now and the increase shows no signs of slowing down. New cars are not for everyone, however, and there are some compelling reasons why buying a used car can make more sense for many buyers. Here are five reasons why buying a used car could be more attractive than buying new.
Even the cheapest new cars have fairly large sticker prices. The cheapest new car on sale today in the UK is the Dacia Sandero at £5,995 and for many people, this is just beyond their budget. On the other hand, you can get a great selection of used cars in Birmingham and elsewhere in the Midlands for that sort of price or even lower. Many people will also want to avoid taking out a loan to buy their car and a low cost used car is often the only way of achieving this.
Get more for your money
The Dacio Sandero might be a decent motor, but it does not come with a great deal of it, and it is certainly not the most prestigious badge. If you decide to buy used, however, you can get quite a lot of car for that kind of money. Buying used means that you can balance buying an older, more prestige model with a newer, more modest one. These prestige marques often offer superb build quality, so buying an older model from one of these manufacturers can make practical sense as well as allowing you the pleasure of driving a smart motor.
Depreciation affects almost all cars, but it is most pronounced in the first year of the life of a new car. Many new cars will lose 30% of their value in the first year. Losses slow down after that, so buying a car that is a few years old can give you a better return when you come to sell it. If you buy a new car for £10,000 and sell it after one year, it will have cost you £3,000 in depreciation. Buy the same car at one-year-old for £7,000 and sell it after one year and it is likely to cost you closer to £1,400.
Get the best of both worlds
Many people cite peace of mind as one of the main reasons for buying a new car. They come with comprehensive manufacturers’ warranties, so unpleasant surprises are unlikely. Many of these warranties now last five years or more, however, so you can buy a used car and still be protected by the balance of the warranty.
Much is made of the green credentials of new cars, but few manufacturers will tell you that as much CO2 is emitted in the production of a new car as is given out in the first 100,000 miles of its life. If you buy a used car, you don’t have to worry about any of that produce CO2, as it has already been manufactured.