Most people would love to own and drive a new, pristine vehicle, but buying second-hand certainly has advantages – many of them financial. Here are five reasons to go for a pre-owned vehicle.
An obvious place to start. The average cost of a new car in the UK is somewhere around the £29,000-30,000 mark. The average cost of a used car purchased online in the first quarter of 2015 was less than a third of that value.
The new car won’t need an MOT test for three years, and will likely be sold with numerous options and mod cons including free or cheaper servicing, as well as probable savings in fuel costs in the environmentally-conscious motoring landscape. But are these benefits worth £20,000? Doubtful.
Once your car leaves the parking lot you’re instantly looking at a vehicle that is only worth the wholesale value, as opposed to the value that you just shelled out to the dealer. The difference could be hundreds or thousands of pounds, and is only matched in size by the heartbreaking feeling of instant cash loss for the buyer.
That dramatic drop in value is generally not suffered by the second hand car buyer. Most cars drop in value as the get older, but that leap off the cliff at the start is not repeated, and instead replaced by a gradual drop. According to the Telegraph the car that retains its value the best, and is still worth 72.5% of its original cost three years after purchase, is the diesel powered Audi Q5 SUV.
A new car is a new car, and you’re somewhat at the whim of car manufacturers with the choice in car showrooms. For petrolheads the new releases always represent a mouthwatering thought, and in 2016 such models include the Alfa Romeo Giulia, Aston Martin DB11, Land Rover Discovery 5 and Tesla Model X.
Meanwhile, think of the choice that a second-hand buyer faces. One could buy an as-new Lamborghini, a 1970 VW camper van, a 1920 Morgan or a Renault Megane – they’ll differ wildly in price, but try buying any of those new.
Cheaper to insure
It’s not strictly true that the lower the value of the car, the cheaper the insurance, but there’s certainly likely to be a correlation simply because there’s more to replace. Insurance premium values vary depending on location, crime rates, and even family status, and to some more higher risk drivers such as newbies a new car would need an insurance that is unaffordable to most.
This is a more general point about vehicles in general, and the benefits of owning a car as opposed to not. Yes, cars can be sources of stress. They break down, they’re expensive to run, and jealous people enjoy scratching them or taking them – although an older car might be less likely to evoke pangs of envy than a brand new sports car, of course. Cars have to be maintained and parked, and costs built up.
But unless you live in a city or can rely on lifts from friends or family, then you need one – and you’ll soon appreciate it. Owning a car could be a means of collateral for CarCashPoint log book loans, a way of guaranteeing work, and a carriage for spontaneous day trips and holidays.