Buying a car is both one of the most exciting activities you can do, but also the most daunting, given the prices of cars these days. It is a decision that should take research, thinking time, agreement of your partner (if you have one), and even sometimes the approval from your peers.
It is no wonder then that people are increasingly weighing up between new / used cars, and ultimately choosing the ‘used’ route. We’ve listed the top 5 reasons why customers should buy a used car and how financing a used car makes so much sense.
- Shortage of new cars available
With the world in its current state (Ukraine-Russia, COVID, Brexit), the supply chain for new car sales is completely shot, with numerous components facing a huge backlog. I went into a dealership last weekend and was quoted a delivery time of 18 months. Let that sink in. It’s madness. I promptly gave up and will go ‘used’.
- Used Cars are Cheaper
As we know – once the car rolls off the dealership forecourt, the car value drops around 25%. That in itself a huge discouragement to many of us. Even more, cast your mind back the last 30 years and cars these days are simply built better. As such, the shelf life on cars is far better and although more things can go wrong on a car these days, they driver further and are lasting longer than ever.
So whether you are looking for a car for the next 12 months or 12 years, you can be sure to know that the used car option will provide you ample options with great affordability. Used cars are considerably cheaper than brand new for obvious reasons, but it’s the lack of a drop in quality which counts for so much when purchasing a car for your driveway.
Many customer these days buy ‘on credit’ agreements. Car finance has quickly become the main method of purchase, what with such good options to buy a used car, and on extremely affordable deals. Car finance with providers such as Concept Car Credit, are shining the light in creating such good opportunities for those buying used cars.
- More choice
If you are anything like me and like your cars, then you are probably in love numerous cars at any point in time. Which then makes buying a car, used or new’ pretty tricky. So much choice!
However, with so many used car models and with manufacturers refreshing their models and lineups more frequently than ever, it actually means you have so much more choice in terms of style, type of vehicle but also in availability. This last point links in very well with point 1 above.
- Lower Insurance
With the price of new cars higher than ever due to mounting manufacturing costs and cars becoming more robotic and complex by the day, this impacts not only on the cost of purchase but also in the cost of insurance.
Car theft and damage is sadly not going away quickly – and in many places in the world and at home – going up. So with increasingly more expensive cars on the road, this means that car insurance is often going up, especially with new models. This is largely due to the high cost of replacement, which is considerably lower with a used car.
As mentioned, the cost of car insurance largely aligns with the value of the car being insured (there aa few other motivating factors), which means that used cars are naturally cheaper on insurance. For many of us, a used car is more likely purchase, and for that the costs are widely lower for insurance versus new car ownership.
- Less Depreciation = better investment
Unless you are buying a rare car, hyper car, supercar or classic, then the likelihood is that thecae you buy will reduce in value during the time of ownership. Sadly these are facts that are tough to argue with. Like death and taxes, it’s just best to accept this reality.
So for the vast majority here, we’re talking about driving of the forecourt with a new model and seeing 25% wiped off immediately. Hardly the investment of a lifetime is it!? This is why buying a used car makes so much sense. From an investment perspective buying a used car will see almost no immediate depreciation, and only the amount of miles you add, plus any damage you incur, please length of ownership will see your car value plummet. But let’s be honest those points are valid for both new and used.
Let’s reflect and see that financially it makes so much more sensate buy used. There’s more choice, you can buy and receive almost immediately (not having to wait 12-18months – not a joke). A used car is cheaper (generally) to insure, and used cars will generally last longer than ever before due to a vastly improved quality of build from manufacturers these days.
As said – buying a car is both daunting but amazingly exciting. Go well and good luck.