Why Does a Second-Hand Car Represent Better Value?
Many people think that they accumulate an asset whenever they buy a car. However, some of those stuffy-nosed accountants are only too keen to tell you that this vehicle is a liability rather than an asset and can never be viewed as an investment. However, if you love the freedom that a car affords, you don't really want to hear that, but it is nevertheless important to be "smart" as you make this significant purchase. If you've always got an eye on your wallet or purse, should you buy new or used?
Value for Money
Your friendly accountant will be quick to tell you that a new car loses a lot as soon as you drive it away from the showroom. In fact, it may lose as much as a quarter of its value in the first year of ownership, even though that rate of decline will gradually slow after that. A lot of this money disappears in the form of dealer markups and marketing cost, or the effort that the manufacturer makes to bring this car to your attention. Other than that, there's not much difference between the shiny, brand-new vehicle on the forecourt and its predecessor that you may pick up "second hand."
Some people say that there is nothing like the smell of a new car and while this may be true, you can still find a perfectly acceptable version in a second-hand lot, in very good condition. This is because most people look after their new car carefully for its first 12 months and will always ensure that they take it in for the recommended service. You can take advantage of this attention by buying the vehicle when it is one-year-old, and your accountant will certainly thank you for doing so.
Smaller May Be Better
When you look at the budget to run the vehicle, it pays to buy a relatively small car if you can. Not only will these be more frugal at the petrol pump, but they will be cheaper to insure. Furthermore, if most of your driving will be in an inner-city environment, then you can buy something that is easier to manoeuvre, as well.
What Can You Do with Your Savings?
If you decide to buy a used car rather than a new one, you will be able to save quite a bit of money over your first year of ownership. Just imagine what you can do with this extra cash, instead of giving most of it to those big manufacturers.