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Is Buying a Used Car Worth the Money Saved?

Is Buying a Used Car Worth the Money Saved?

Posted On 13 Dec, 2017

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As enticing as buying a shiny new car sounds, you must take a look at what the purchase would do to your finances. It is known that fuel economy and efficiency improve as the auto industry evolves. But that is not the only yearly expense you must consider when you’re buying a car. Taking insurance, service and repairs into account, it is difficult to judge whether to buy a new car or go ahead with purchasing a well-maintained, used car in London.

Here are a few things you mustn’t overlook while making a decision.

1. A new car generally takes a 20% hit in depreciation the minute it leaves the showroom. This means that even a one-year-old used car will be 20-30% cheaper. With a used car, you’ll also pay lower insurance costs due to its low cost.

2. With a used car, you may incur higher repair and service costs. Used cars typically have a lower gas mileage and fewer safety features as well. On the other hand, you may be able to get a better deal on a used car, and it won’t depreciate as a brand new one would.

3. Registry renewal cost of a used car is cheaper as the cost of registering a used car goes down every year.

4. You have the choice of moving to a higher grade of cars since you save about 30% of a new car’s price.

5. You have the option of choosing certified pre-owned cars. These cars are essentially only a few years old and some dealers, such as Hertz Rent2Buy – a game changer in used car sales in the UK, presents you with a history of the car. Therefore, you are freed from the worries of the car’s potential hidden problems.

Most personal finance consultants will ask you to go for a used car instead of a new one due to its lower purchasing cost. Do you save money when you buy a used car? Maybe. It depends on the make of the car, its maintenance, its age, and what you’re paying for it. Many people would rather pay a premium than play the gamble. But it is for you to decide which option is right for you and your budget.

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