When you think of buying a car, the chances are you imagine a new sparkly vehicle with zero mileage. Yet, most times, buying a used car is a much more practical decision than purchasing a brand-new ride.
And you won’t be the only one to do so.
In fact, statistics illustrate that the used car market is bigger than the market for new vehicles. For example, Statista reports that in 2018, compared to 17.21 new cars sold, there were 40.42 million used cars sold. In 2020, the used vehicle market was valued at a staggering 1.2 trillion USD!
So, if you are thinking of buying a vehicle, here are the benefits you can realize by opting for a used car instead of a new one.
1. The lesser ongoing depreciation of value
One of the major drawbacks of getting a new vehicle is how fast the asset depreciates! As soon as you drive it away to the sunset from the dealership, whoops, there goes the value of the vehicle by 11 percent! In other words, you won’t get the same price for it if you wish to sell it back. You will get 89 percent of it!
The vehicle’s value continues to depreciate in the coming weeks and years. However, when you buy car UK used market has to offer, you will notice that its value has already undergone the majority of the depreciation! In fact, during their lifetime, some vehicles (if they are vintage) gain value as well!
So, when you purchase a used car, you don’t have to worry about its value going significantly down as soon as you drive away with it. This makes them a stable asset to have, which you can sell off when you need to, without losing a lot of money.
2. Sustainable for the environment
Quite a lot of energy is required to manufacture a car!
According to MDPI, vehicle production consumes 41.8 MJ/kg of energy per vehicle. The majority of this consumption occurs during the mining as well as the material production process. Not to mention that producing a mere 1 kg of the vehicle requires 5.23 kg of raw materials.
Moreover, one-fourth of the carbon dioxide produced by a car throughout its life cycle is during the manufacturing and shipment process.
Hence, one new vehicle sitting at the dealership costs the environment a lot. So, the fact that you reuse the same vehicle multiple times during its lifetime reduces the burden on the environment, thereby creating a sustainable world.
3. A safe investment
Even though buying a new car is an exhilarating process, it is also quite risky when you think about it. Regardless of how much research you do, if you are buying a car model that has just hit the dealerships, the chances are that you won’t have any comparable data to make a wise decision.
This is where purchasing a used car pays off. Since the vehicle you are buying has already been in the market for some time, you can research how well the model or those similar to it are performing over the years.
This will help you select the right brand and model. Compared to this, at times, you are forced to rely on your gut feeling with new cars, which may or may not pan out the way you want it to.
4. Access to a thoroughly inspected vehicle
Used vehicles come with certification. The pre-owned vehicles are thoroughly inspected and reviewed by third-party individuals to give credibility to the purchase.
Certified used vehicles are not only inspected by also refurbished, thereby ensuring quality. Additionally, such certified vehicles also come with an extended warranty and other perks like financing. This is done to provide assurance to car buyers that the said vehicle is worth their money.
In the case of new cars, the fact that they are new is often the only assurance given.
5. Lower premiums for insurance
Imagine this. You have just bought a brand new vehicle, and you wreck it. Shudders, right? Well, such unfortunate events do happen. And this is where insurance kicks in. Your insurers pay up to the amount of the value of the vehicle. As discussed above, this is always lower than the purchase price.
And to cover this, a separate type of insurance comes in, called gap insurance. This covers the differential cost between what you paid for your car vs. what its current value is. But, to get this insurance, you have to pay a higher premium.
In the case of a used vehicle, as depreciation has already occurred and the value and price of the vehicle are comparable to one another, you don’t need to opt for gap insurance, thereby reducing your premium.
Checklist for buying a used car
Purchasing used cars will allow you to enjoy various benefits – ones you might not have even considered before. But, whether or not you can truly realize them all also depends on your ability to select the right car. Here is a short checklist to consider:
- Check the condition of the car by seeking help from a mechanic and going for a test drive.
- Verify registration documents to ascertain the owner of the car.
- Check if the vehicle is fit to be modified as per your requirements.
- See if the original warranties of the car are still applicable. If not applicable, ask if there are any additional extended warranties being offered.
- Research various avenues to ensure that you get the best price for the vehicle.
Getting a new, unused car is the ultimate dream for many. But, at times, getting a used one is a much better decision! Who would have thought doing so would allow people to enjoy so many hidden benefits.
If you think that you can come to terms with driving a slightly old version of your favorite car (which you can replace with another used car without losing your money due to depreciation), we would recommend you do so!
Have you ever owned a used car? Let our readers know of your experience!