Buying a vehicle is a big deal, be it a saloon car, a minivan, or MiniBuses, it’s probably one of the most valuable possessions you can have apart from your home. When it comes to buying a car, the first question that pops in mind is whether to buy a brand new or second-hand. Whereas buying a used vehicle is not an option some people would consider, it is a great way of financial management for others. As such, it is a big decision that can impact your finances for some years. This article explores the pros and cons of buying a used vehicle to help you make an informed decision.
A new car starts to lose its value the moment you take off from the yard. As such, buying a used car means that someone has already taken the biggest hit of depreciation. If you decide to sell it off in some years, you may receive nearly the same amount you paid for it.
A used car is relatively cheaper compared to a new one. The cost of a second-hand vehicle can be up to seventy percent less than its initial price depending on its age, market value, and condition. That means one can easily save and pay in cash. You can as well look for a better financing option to finance your purchase if you don’t have enough savings. You will still be better off than getting a zero interest loan on a new car since you won’t lose any money on depreciation. Buying a used vehicle can also benefit you by paying lower insurance rates compared to a new one. If you are still young, these can prove to be significant savings after several years.
Fear of the unknown
If you don’t bring your mechanic along when buying a second-hand car, you may never know if it has any underlying problems. You don’t expect the seller to tell you if the vehicle has been flooded, involved in a criminal case, or in an accident. However, if you are keen to know about the car’s history, you can always ask for the relevant documents and do a background check.
It can be quite costly to maintain a second-hand vehicle, especially if it had any problems and they start to reveal themselves. Depending on the model, you may also find it hard to get spare parts. That would mean importing such parts, which is costly.
Every new car that is launched in the modern day comes packed with new features and innovative technology integrated into the car’s safety, performance, and entertainment. You are unlikely to find such features in most used cars unless you are very lucky. Led flash and fog lights and WiFi connectivity are some of the features you can only find in newer models. However, if you are the type of person who is not moved by these features, you are good to go.
Overall, second-hand cars have a fair share of benefits especially if your budget is tight. However, it’s important to also weigh in the shortcomings before you make the final decision.