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Are used vehicles worth buying?

Are used vehicles worth buying?

Posted On 08 Aug, 2018

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Buying a new car can be really intimidating but you have to consider how much money you can save. According to a report by the National Automobile Dealers Association, the average person owns 13 cars in a lifetime, each costing an average of £30,000. If each of those 13 cars were used cars and approximately three years old, you could save nearly £30,000 during your lifetime!

A person who saves money by buying a used car is really worried when he hears the word “amortization”. When you finally understand how car depreciation draws money out of you, you will also understand how to save cash through your entire life. The standard for car depreciation is that all cars, in general, lose about 15 to 20 percent of their value the moment they are bought. Yes, just for one minute a car that is worth £30 000 and loses £6 000 from its value. Until the end of the first year, the mileage and the wear and tear of the car can lead up to 30% loss of its value, or in other words £9,000. Until the end of the first year, the car loses up to 30%- 40% of its value.

Compare:

In case you buy your new vehicle for £30 000 and you sell it three years later for £15 000 that means that your car is worth £15 000 in depreciation. Now let’s imagine that you buy the exact same car, but it is three years old when you buy it. You can buy the vehicle for £15 000. Three years later you can sell it for £10,000, so the amortization of a used car will cost you only £5 000.

Advantages of a used car:

We often hear the saying that buying a used car is just “buying” a new problem. That is not true. The cars for sale and the vehicles that are made today are reliable. It is clear that buying a used car is much cheaper than buying a new one.

• When the vehicle costs less, then the insurance is also lower.
• The expenses of registering a used car become lower and lower every year.
• As you can save up to 30% or more from a used car, you can go to the car dealers and look for cars that are higher class.

Tips:

• In order to save yourself a lot of troubles when you buy a car, ask a person that has car knowledge to come with you to help you.
• Do not buy a car that you can´t afford. Keep in mind the monthly costs and the maintenance of the car!
• Set aside some money for small eventual repairs that could happen after you buy the car, especially if you have a loan from a bank.
• Buy your car from dealers with the good reputation or from people that you can trust.

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