Well, besides buying your home, the next colossal purchase that needs you to go deeper into your pocket is buying your car. In a society where urgency is required in almost every business or transactional deals, you cannot rely so much on public transportation.
Owning a car becomes even more crucial in countries that don’t have well-established public transportation. But are you ready to deal with the salesmen, which sometimes can be frustrating? Do you have enough bucks to bump into an automotive yard and purchase a brand new vehicle? Are you ready for the expenses, including depreciation and insurance premiums?
After considering the benefits of buying a used car, you could find yourself opting for it. So what are some of the pros of purchasing a used vehicle?
Benefits of Buying a Used Car
1. Low Price Tag
This is perhaps one of the significant benefits you cannot afford missing when buying a slightly used car. Unfortunately, new cars have a very high price tag, yet when you drive them from the car dealer’s lot, they immediately start losing value.
According to research conducted by the CNW Marketing Research, you are likely to buy a used car half the price of a new car. That will tell you how much you can save by purchasing a second-hand car.
2. Less Depreciation
Did you know a new car loses 11% of its value the moment you drive it from the lot to your home? The depreciation continues as the vehicle is being used. You can take advantage of this loss of value by purchasing a used car. Since it has already lost its importance and has already depreciated, your car will depreciate less.
3. You can Avoid Hefty Fees
Buying a brand new car can be hectic, especially when the fees come in. Some of the hidden costs like shipping charges, warehouse fees, destination fees, advertising fees, and document fees, among others. All these costs can go as high as thousands of dollars. But you can avoid all these fees by buying a second-hand car. The only expense you may incur with a used car could just be licensing fees and transactional costs like transferring ownership.
4. Low registration fees
When it comes to the registration fees, most countries and states usually base it on the value of your car. That means a brand new car usually has higher registration fees compared to a used car.
The first three years of purchasing your new vehicle can have the highest registration fees; however, this trend usually changes as the car depreciates in its value. If this is the system in your country, you could end up saving thousands of bucks when you purchase a used car.
5. Already in a Certified Condition
Of course, the car has been well-inspected and tested for quality, efficiency, and operations. Every used car has been inspected and certified fit for use by the manufacturer. Before the dealer displays the car in their lot, they have tested it and ensured that it is in good condition.
6. Fewer Customization Costs
A new car may require multiple add ons that satisfies your needs and preferences compared to a used car. The cost of installing these add ons is lower when buying a used car because it has these features installed already.
7. Low Premium Fees
If you are to ensure your used car, the insurance company will tend to charge you less based on the value of your vehicle. Since the car’s value has depreciated, the amount of the insurance premiums will be based on the current value of the car.
We can continue listing more and more benefits of purchasing a used car because they are numerous. However, you also need to know some tips for buying a used car so that you don’t fall into some common pitfalls many buyers are falling.
Tips on Buying an Old Car
Although the process of buying a car can be cumbersome, there is a time that it becomes a reality that you have to do it. The following tips will help you through the process:
1. Do a preliminary research
There are crucial things every car buyer should know. Before visiting that dealer or that lot, ensure you have sufficient information about what is involved in buying a used car.
This will also equip your mind on what to expect from the dealers. Besides, it will help you avoid counterfeit dealers. Be aware of the resale value of the car model that matches your taste.
2. Visit different dealers
You don’t bump into one dealer and believe that whatever they are telling is the full gospel truth. You need to go around and know different prices that dealers are offering for your specific car model.
3. Avoid buying based on monthly payments
Some dealers are crafty in that they will provide you with desirable monthly payments, which eventually end up being higher. If you are negotiating, base your negotiations on the purchase price of the car, not the monthly payments.
4. Ask of other hidden costs
It is sporadic for the dealer to tell you about the hidden costs. They will mention the buying price without informing you of the additional hidden costs attached to the amount. Ask for taxes, delivery fees, car preparation, and maybe dealership costs.
5. Never mention your trade-in
Remember, these dealers have been in this field for long, and they know how to manipulate the buyers. To avoid any manipulation and being taken advantage of, let them mention the price first and start negotiating before suggesting your trade-in. Trade-in should come when you are closing the deal.
6. Never buy based on impulse buying
Impulse buying of a used car can be a dangerous endeavor that you should never take. Always research the model, insurance rates, make, style, and financing extensively.
7. Buy a car you can afford
Never let the pride of life drive you when buying a used car. Always go for a vehicle that fits your budget. Nevertheless, it should meet your expectations.
8. Always test drive the car
This will help you know the handle-ability of the car and whether it has any technical problem. It is also good to involve your children and wife in the car testing. They will give an accurate assessment of the comfort of the car.
Purchasing a brand new car may seem like the best deal, but if an in-depth check is carried, it may be a rollercoaster that will hammer your finances to the ground. The best alternative to this, therefore, is buying a slightly used car.