Once you realise that you are ready to buy your first car, the first thing you must figure out is if you want to get a brand-new model or a used one. There is no denying that there are pros and cons for each option, but this post will focus on why you should choose a used vehicle over brand new.
1 – It has something to do with depreciation.
If you are looking to purchase a vehicle as an investment, then you should know that opting for a new car is an unwise decision. While it is true that modern cars these days are expected to last for more than a decade, the fact remains that cars will eventually depreciate. Brand-new cars will lose most of their value in the first three years. So, unless you don’t plan on selling your car after about five years or so, then you are better off looking at a used vehicle as your first.
2 – You have a handful of options for your money.
When you’re shopping for a car, you obviously will set a budget before you start shopping. Once you come up with an exact figure, you realise that you only have very few options if you decide to purchase a brand-new model. On the other hand, taking your money to used vehicle sales will make you appreciate the fact that you have hundreds of options. The used car market in Australia is flourishing, and you can even get makes and models which are only two or three years old for a considerably low price. So, if you are someone who does not have a specific make or model in mind, you will find it very exciting to have a look at the many choices out there based on your budget.
3 – Insurance costs are lower, too.
Bear in mind that the value of the vehicle is the primary consideration for insurance companies in figuring out their rates. Simply put, the more valuable the car, the higher the insurance rate and coverage. What it means is that it will cost less to insure a used car compared to a brand-new model.
4 – You expect to pay lower registration fees.
The upside of looking at used vehicle sales instead of visiting showrooms for brand-new cars is that you not only save up on initial cash outlay but also on ownership costs. The reason is that aside from the minimum insurance rates, you also expect to pay a lower fee for registration. Some regions will base the registration fees based on the age of the car, as well as engine displacement and weight.
So, if you plan on changing your car after about five or six years, it is best that you go for a used model instead of a brand-new vehicle. It makes no sense to spend a premium price when you don’t even plan on keeping it for a long time.