Should You Buy a Used Vehicle as a New Driver
Posted in: Car Insurance, Driving Tips, Motorway Driving, News.
If you are just learning how to drive then you may be tempted to buy a used vehicle. In some instances, a used vehicle can be a good idea too. If you don’t have a big budget or if you want to make a more informed decision then you can find out everything you need to know, right here.
Value for Money
New cars tend to come with a very hefty price tag. This is a reflection of the fact that they are fresh off the production line and come with a range of premium features. With that being said, they also come with a range of comfortable features. You will also pay VAT on the new car, so part of that comes into it as well. Used cars tend to attract buyers as they come with a very low asking price and they can also offer you a lot of upfront savings. A used car can be a good way for you to take advantage of numerous benefits, such as being able to get a better model for a lower price. It’s very easy for you to find used hybrid cars online too, so if this is something that you are interested in, you can get a good deal with ease.
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Depreciation
Depreciation is the biggest burden that new car buyers face. It hits you the hardest in the first year as well. Over the first five years, you can expect your car to depreciate by roughly 50% as well. A used car loses value at a slower pace. If you buy one that is over five years old then you can expect to make a good amount of savings. If you buy a new car and then sell it again in a few years then this can result in you shouldering a lot of the loss. If you want to make the most out of your purchase then you need to make sure that you keep hold of the car, so you can capitalize on the savings as much as possible.
Car Finance
Your car’s price tag and general depreciation are not the only things that influence its value. Not many new car buyers pay cash for their cars anymore. Most people lease their cars on some sort of finance package. This can impact the value that you end up getting. The interest rate on a used car is going to be way lower than that on a new car. On top of this, car companies use finance companies as a way of getting a discount. If you can take this into account when buying a used car then you should be able to navigate some pretty good bargains. On top of this, you will soon find that you can pay for a more expensive car overall.
If you can keep things like this in mind when getting a used car, you will soon find that you’re able to benefit and this can work in your favor quite a lot.
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