While we all love to drive a brand-new car out of the showroom, we are certainly paying a lot of money for this privilege, and for the majority of Australian motorists, a car that’s a couple of years old is a much better option. If you are thinking about changing your set of wheels, here are just a few of the reasons why second-hand is the way to go.
- Value for Money – When you consider the fact that you lose 10-15% of the value of a new car the very moment you drive it away, it makes sense to buy a car that is still in excellent condition and has seen around 20-30,000km on the clock. The car would still work just as well as a new model, yet the price difference is immense. There are, for example, used cars for sale in Canberra from an established car dealer at a very affordable cost, and what’s more the dealer will give you a fair warranty. Many canny Australian drivers buy one-year old vehicles, drive them for one year, and then sell them on for a similar amount that they paid, thus giving them cheap motoring.
- Lower Monthly Payments – Obviously, if you buy a used car, it will cost less than a new model, and that would mean lower monthly repayments, and for a shorter period of time. Many people make the mistake of being a little too optimistic when looking to buy the car of their dreams, and they ended up paying a lot more than they could afford, so it makes sense to be realistic when crunching the numbers.
- No Deposit – Many used car dealers will happily accept your old vehicle as a down payment, which means you won’t have to touch your savings, plus you will have to buy a few add-ons, so you will have some spare cash. Finding the deposit on a car can be a problem, what with so many living expenses, and with no deposit, you can purchase the car at any time.
- Drive a More Prestigious Vehicle – When you look at your maximum monthly repayment ceiling, if you buy second-hand, you can drive a prestige car, which, at only a few years old, is still a fantastic vehicle, with full options. If you have always wanted to get behind the wheel of a performance car, now you can actually do this, if you settle for a second-hand model.
- Lower Insurance Premiums – The premiums on a new vehicle would be higher than with a second-hand car, which again, saves you some money, and if you consider yourself to be a safe driver, you could save even more by taking out third party insurance.
If your knowledge of cars is limited, it is not advisable to buy a used car from a private seller, mainly because you will have no warranty, rather go to an established dealer, who has some excellent cars at very affordable prices. The dealer would be happy to take your old vehicle in part-exchange, which really does help.