Buying their very own car is a dream and a goal for many. These days, owning a vehicle is no longer just a want or a luxury—it can be considered a need as well. That`s why a lot of people work hard to save up for their first car. But no matter how much you`d like to purchase that slick, brand-new car you`ve been eyeing for a long time, it may not always be possible. Your wallet and bank account might keep saying `no` since it`s too pricey or your finances are still rough at the moment. If that`s the case for you, don`t worry because there’s still the option of buying a pre-owned car. Doing so can just be as good of a choice as acquiring a new vehicle. In fact, there are numerous advantages you can enjoy by taking that route. Here are some of them:
1. You Can Afford More Add-Ons
There are some car buyers who end up unsatisfied with the built-in features of their new vehicle. For example, your family loves going on weekend outdoor adventures such as biking and kayaking, so it would be great for you to have a car rack that would allow you to bring the necessary equipment. Unfortunately, you won`t get that with a brand-new car; you have to purchase it as an add-on, so your expenses would only pile up.
By opting for a preloved car, such add-ons can fit your budget more seamlessly. Because the sticker price of a used vehicle is lower, you`ll have more leeway in your budget to pay for the add-ons you need.
Plus, if you research thoroughly, you may even be able to find pre-owned cars with all the extra features you`re looking for. You could try these out if you`ve yet to find the exact vehicle you want.
2. It May Cost Less Overall
The cheaper price tag is one of the top reasons buyers opt for a secondhand car rather than an entirely new one. If you`re pinching pennies, you can be more practical by buying a preloved vehicle. If you compare the prices of a used and brand-new car of the same model, the former will always cost a lot less than the latter.
Moreover, the savings you’ll get won’t just come from the price of the vehicle itself—you can also save on other costs of ownership. One of these is car insurance. The premium you`ll pay for an auto insurance policy typically depends on the value and age of the car. Fortunately, there are insurance plans with lower premiums for older vehicles. Of course, if it`s still within your budget, you can go for a higher premium, especially if you think you need it.
3. You Can Avoid Depreciation Expense
One of the most wasteful aspects of buying a brand-new car is the value that the vehicle automatically loses due to depreciation. When it’s still at the dealership, its worth is the full price you`re paying. But the moment you drive it home, it`s already considered a used or secondhand car. At least 20% of the car`s value will have already been lost to depreciation should you decide to sell the vehicle later on. The depreciation continues on a yearly basis.
When you`re buying a preloved car, a bulk of the depreciation will have already happened. Generally, vehicles that are sold in pre-owned car dealerships or private dealers are an average of around three years old, which is three years` worth of depreciation you aren`t paying for. Again, this translates to more savings on your purchase.
4. It Requires A Smaller Loan
Should you decide to take out a car loan for your purchase, you have to be particular about the monthly amortization. This should fit comfortably in your monthly expenses. Otherwise, you`re hurting your budget. It’s enough that you`re signing up for years of debt—don’t add to that financial challenge by taking on monthly payments you can`t afford to make.
The good news with a pre-owned car is that the amount of money you may need to borrow is going to be lower given that the vehicle is more budget-friendly. And because of that, the interest rates attached are also going to be more manageable. This can lead you to get better terms and a shorter repayment period as well.
Conclusion
With the pros mentioned above, are you now convinced that buying a used car is an excellent choice? You don`t have to force yourself into getting a brand-new one if your wallet is leaning toward a pre-owned vehicle. As long as you`re careful during the selection process and do proper research, a used car won`t feel inferior to a completely new car. Now all that`s left for you to do is to go ahead and start searching for the right vehicle for you.