Personal Finance

Discover the benefits of purchasing a used car

The thought of buying a new car and potentially upgrading, is always exciting. People dream about driving a shiny brand new vehicle. Then they realize that new cars can be extremely expensive and unless you have excellent credit, you could be paying very high interest rates to own one. They also start thinking about the problems that can be looming, because it has never been driven. Then they start getting nervous about the prospect of a ridiculous car loan, and thoughts about who is going to buy my car to fund my next purchase, starts to race through their heads! Perhaps a used car is the safe answer. If you have experienced a similar train of thought, you are not alone.

There are many reasons you may want to purchase a used car instead of a new one. Some of them are listed below:

  • Much better price- There is a $20,000.00 difference between a new and a used car according to The interest rates are not much different between the two types of cars. Even though used car interest rates may be slightly higher, the overall cost of the car will be much less.
  • If you buy a used car from a private party, you will not encounter the additional fees associated with new cars.
  • The kinks have been driven out of a used car. When you purchase a new car, you may encounter minor issues that have yet to be ironed out by the manufacturer. Some are even lemons and have consistent problems. If you buy a used car, any issues are stipulated in black and white.
  • Deciding to buy a used car opens up a huge inventory of cars to choose from. You won’t only be able to choose from this year’s models. All of a sudden, a whole world of cars has opened up to you to buy.
  • New cars can lose up to 40% of their value in the first year. You never really get the value that you paid for a new car back, even when you try to trade it in. Used cars depreciate much more slowly and you paid less to begin with.
  • The price of insurance can be a big difference. New cars are much more expensive to insure because of their replacement value. You will have to pay more for GAP insurance to cover this difference. Insurance for new cars may be an added expense you haven’t thought about.
  • The internet opens up a whole new way of finding information out about used cars. There are websites specifically created to let you know if a particular vehicle you are interested in has been in a major accident. There are also sites that can give you the value of the car you are considering. They also have websites like that offer a centralised online destination where individuals can buy and sell their cars. The options are endless.

used cars

If you are considering the option to buy a used car, you may want to think fast because cars that are in great shape are snatched up quickly. People favour cars that have had only one owner because service history tends to be more consistent. You may be able to take advantage of parts that are still under warranty, if the owner has kept all the receipts.

There are many benefits of purchasing a used car. They are usually cheaper to purchase and to insure. They don’t lose their value as quickly as a brand new vehicle, picked up from the showroom. The process of buying a used car from a private party can be a great move for the seller as well as the buyer. Using online platforms such as allows for a hassle free experience.

Previous post

Ten tips from the ATO for Tax Time 2015

Next post

A List of Annual Household Tasks To Save Money



No Comment

Leave a reply

Your email address will not be published. Required fields are marked *