Home
The depreciation rate of new cars can be surprisingly high. After three years, only about 60-70% of the initial value is left , and a new car becomes very quickly a used car. From the point of view of a buyer, this means that used cars will preserve their value for longer as the initial plunge in worth has been absorbed by the original owners.
A lower price tag is an obvious reason for choosing a used car over a new one, and the retention of value is a good bonus. However, economical car deals are not the only reason. To a great surprise, practicality or even thirst for luxury might act as factors in the choice.
The association between luxury and second hand cars might not be too apparent, but choosing a used car can make it possible to afford all the extra features of our dreams. The lucky buyer could end up with a customised car for no extra cost. And, rather than having to wait for weeks for a new car to be delivered, it becomes possible to drive off with the perfect car at that instant.
Despite all the benefits, buying a used car does have an element of gamble to it. If the car has been passed through a good inspection, the risk is lower , but finding out whether a car is accident-free, whether its meter reads the right mileage, or whether it has been maintained properly can be tricky.
Buying from a franchised used car dealer will buffer the risk involved. Dealers can be trusted to do a thoroughinspection on their cars ; they provide a full service history and guarantee a correct mileage. This peace of mind might cost you a slightly higher price compared to the private maket, but your rights as a consumer will be legally protected. And that is a great return on money spent.
In the used car markets, the best deal is not necessarily the cheapest one. There is usually a reason for a bargain, so buying wisely will pay off. Remember to always keep the following tips in mind:
- Do your research. Have a clear idea of what you are looking for when you go to a dealership.
- Check the car. Don’t only believe what you’re being told, but bring the car for inspection to a mechanic you trust. Never sign a contract until car has been inspected.
- Read the papers you sign very carefully.
gsqfin