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The Pros and Cons of Buying a Used Car

Posted on 14th January 2021
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The Pros and Cons of Buying a Used Car

If you are thinking about buying a used car, it is easy to worry that it will be a waste of money. Most new car will have few repairs, but it is important to remember buying a car is not an investment. This said, you need to ensure that a used car does not end up costing you more.

New cars depreciate in value quickly. As soon as it leaves the showroom, around 20% of the value is lost. Financially, buying a new car is almost like throwing money away.

Pros of Used Cars

There are many high-quality options when buying a used car, regardless of the lower price. Most people opt for a used car than a new car. Here are some of the other advantages.

Slower depreciation

As cars depreciate in value as soon as they hit the road, some drivers choose a used car.

You let someone else take the hit on rapid value depreciation in the first few years. Because of this, they usually have lower monthly payments on finance or loan.

If this is your main worry, buying a car that is a few years old is a reliable choice. This way, you could get a luxury car at a fraction of the price.

Cheaper Insurance

Insurance premiums will also be cheaper on a used car. If you are a first-time driver, or younger driver, let’s say in your twenties, used cars can offer significant savings. This is because young drivers almost always have much higher insurance rates.

Tried and tested

If you buy a brand-new model of car, it could start to have problems because the brand has used a new engine or altered the design. Over time, more research is available about car makes and models so you can make more of an informed purchase.

Cons of Used Cars

Hidden repairs

The biggest con of buying a used car is uncertainty about the car’s history, tampering with the mileage, and so on. It is important to get a detailed vehicle history before you buy a used car.

The previous owners will have caused some damage to a used car. This can be hard to spot and easy to mask at a dealership. Once you have the car at home and start to use it regularly, these damages can rise to the surface and cause stress and financial strain.

Less reliable

Although this is not always the case, used cars can be less reliable. Brand new cars will have less faults, less quickly. It is unlikely you will have any problems, likely until 80,000 miles are on the clock.

You are a greater risk of breakdown when you buy a used car, which can produce unpredictable costs. When this happens, the initial money saved may be outweighed by repairs.

Harder to find the right car for you

When you buy a used car, there are less options to choose from and you cannot be as picky. You are limited to what people are selling at the time. It may take several searches over days or even months before you find the car for you.

If you buy new, you have choice of features, colour and extras that are personal to you. Finding a used car that you like and will be reliable can be a timely process.

One advantage of buying a new car is that dealers may offer finance at a lower interest rate.

Whatever you decide, you should make sure you can manage your spending. At Euphoria Finance, we have countless used cars available, even if you have a history of bad credit. You can get credit on used cars, not just new ones. Secure used car finance easily with us today.

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