Everyone loves a bargain. And when it comes to buying a car, there is one simple way to make your money go further: step away from the new car showroom. The used car market is so much more attractive than buying brand new, and here’s why.
A new car can lose as much as 20% of its original value once it has been driven off the forecourt. It’s not often that a car maintains more than half of its original value after three years, with some dropping by as much as two-thirds. This means you can either save yourself A LOT of money buying the car you want that’s only a couple of years old, or you can make your money go further. A budget of £11,000 will buy you a brand new 1.0L Hyundai i10 SE with 66 BHP. The 0-60 mph time is about an hour and the 14” alloy wheels make it look like an oversized shopping trolley. Instead, you could get a two year old Ford Fiesta ST-2 with 180 BHP and only 7,500 miles on the clock. The latter will do 0-60 mph in 6.9 seconds, while you’re sat in an incredibly supportive heated Recaro seat. Oh… and it is parked on my drive. It’s extremely fun to drive and such a bargain!
The rate of depreciation decreases over time, so buying a used car means you will lose less money while you own it. My parents bought a one year old 1.4L Vauxhall Corsa SXi for half the original price, £7,000 instead of £14,000. Three years later, it is worth about £4,000 and depreciation is pretty much minimal. Maybe you weren’t convinced before, but losing £7,000 in a year? It’s just not worth it.
The depreciation on luxury cars is even higher too, meaning you can get even more for your money. Brand new, an Audi S3 will set you back around £40,000. Yet my friend picked up a nine month old model with 8,500 miles on the clock for only £27,000. That’s a whole £13,000 cheaper than new, with almost a third of the price lost before the car was even a year old.
In addition, the money you spend on extras on a brand new car does not necessarily translate onto the resale price. Sure, it will make your car more attractive to buyers when you come to sell, but that £3,000 you spent on better paintwork, upgraded stereo and lighting pack will probably get you a couple of extra hundred pounds when you sell it in three years time. OK, that’s a very specific example, but you get the picture.
With advances in technology, newer cars rely heavily on complicated electronic systems. Although these are really helpful, most breakdowns of new cars are due to an electronic fault, which can often not be repaired at the roadside. Used cars are not immune to breakdowns, but they’re less likely to have an electronic fault, or any recalls or replacements. The set up will have been tried and tested over a number of years and is proven to work well.
And then there’s the huge choice of cars available on the used car market. With brand new cars you’re limiting yourself to a handful of models per manufacturer. Yet on the used car market there are hundreds of models available.
If, for some reason, you’re still not convinced because you’re worried about the car’s history, don’t be. You can search online for the MOT history of any car back to 2005, and check it’s got a full service history. Manufacturer approved used dealers can give you peace of mind as they include a thorough vehicle check before it’s sold on. You can almost guarantee the same quality of customer service as if you were buying new, and you can go back if something does go wrong.
Local used car dealers also offer great prices on used cars, and they too will carry out vehicle health checks before selling. They will often perform an MOT or service before you buy, along with any other work that needs to be done. If you’re looking for a local car dealer in Brighton, KAP Motor Group have some great deals and a wide selection of used cars to choose from.
Quite simply, buying pre-loved means buying a better car for a lower price!
What are your thoughts on used cars? Have you purchased any great bargains? Leave a comment below!
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This is a sponsored post by KAP Motor group