A lot of people still scoff at the idea of buying a secondhand car ― much to their loss! Believe it or not, getting a used vehicle instead of a brand new one can actually be the better choice. Aside from the fact that there are reputable dealerships that offer quality and affordable bargains, here are a couple of other reasons why a secondhand car is a smart investment.
Recent Cars Live Longer and Are More Reliable
Many secondhand cars in the past made risky investment indeed. Luckily, the same cannot be said of today’s modern cars. Where past vehicle models are designed to last only up to 7 years, today’s line of automobiles can last at least 10 years. Moreover, today’s cars are built with features that made it much more reliable than their predecessors. Thus, it will cost you significantly less to get a used but well-maintained car than a brand new one.
Better Financing Terms are Also Available Now
Secondhand car dealerships don’t have to sell their cars as hard as those offering new ones; they don’t need to lure you in with installment schemes, impressive sales talk, and what-not. Thus, interest rates for used vehicles tend to be higher than on brand new ones. Still, these interest rates are very competitive! Plus, you can negotiate with the dealer to get lower down payments and long repayment terms, grabbing a fantastic financing assistance deal in the process.
Insurance Costs Also Tend to Be Less
Buying a used car and getting it insured will cost you much less in the long run than buying a new one. Car insurance is based on a variety of factors like age, previous accidents, and value. However, vehicle value plays a bigger role than most of these factors. A brand new car’s value plunges during the first years of ownership, no matter how well-maintained it is. Thus, its insurance cost tends to be less.
And You Can Minimize Depreciation
The value of a brand new car starts going down by 20% as soon as you drive it off the lot, and it will gradually decrease in value by 10% during the first year of ownership. This is something not faced with second hand car owners. Not only does a used vehicle enable you to better take that depreciation hit, but it also allows you to get a great deal for a fair price.
Go for Secondhand Cars
As you can see, pre-owned cars does make a smart investment for those looking for great car deals at affordable costs. So instead of shelling out thousands of pesos for a brand new ride, you would do better to get a used car and save your hard-earned bucks.
Check out GoDrive’s quality second hand car units here.