How Used Cars Offer More Value for Your Money

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Typically, used cars are so much better for your finances that purchasing a brand-new model could justifiably be seen as simply throwing money away. Of course, you could try a trade-in with a new car dealer, opt for a lease or even try to haggle over the asking price. Nonetheless, even if you do manage to drive your initial outlay down, the chances are you would have been better off buying a second-hand car instead. Why is this?

Slower Devaluation

To begin with, when you buy a brand-new car, it will devalue considerably in the first month or so after you first own it. Even if you don’t put many miles on a newly registered car, the fact that it has already been owned will mean a substantial drop in value. In fact, even driving a new car off the forecourt of a dealership is enough for it to lose a substantial amount from its asking price. Cars devalue, like this, at their fastest rate in the first year of ownership. Once they’re three years old, the rate of devaluation typically drops. After five years, they’ll devalue even slower so long as they’re cared for with an annual service. When you buy a second-hand car, you simply won’t need to worry about such a rapid drop in value.

Second-Hand Warranties

Some motorists accept the higher asking prices for new models because they think they get something in return for their money, namely a warranty on the vehicle. Let’s face it, some of the warranties on offer today are very impressive with some car makers offering up to seven years. However, such warranties might not include everything you might expect and simply using your car may mean you invalidate the warranty in some way. This could happen if you were to drive a certain number of miles, for example. You won’t get a warranty from a private owner selling their car, though. However, if you choose KAP Motor as your trusted used car dealer, then you will. Reputable second-hand car dealers should provide a warranty and conduct safety checks to ensure the cars they sell aren’t just cheaper than new ones, but they come with many of the same benefits as brand-new models, too.

Lower Insurance Costs

Insurance costs seem to go up every year in the UK regardless of how well you may have driven over the course of the last 12 months. Of course, the price of your insurance policy will need to reflect the number of claims motorists are making in any given year. What’s more, the value of your car will be reflected in the policy prices you are quoted. Simply put, cars with a higher replacement valuation cost more to insure. Therefore, if you opt for a three-year-old car that has already devalued somewhat from its original price, then the cost of insuring it – considering other local factors – should always be a less expensive option.