A car is among the biggest single purchases many of us make in our lives (usually coming second place only to the homes we live in). If you’re in the market for a new car auctions, then you might have balked at the amount of money you’re going to have to find – especially if you don’t want to compromise on features in the long-run.
Among the biggest costs to factor in is that of depreciation. It’s a widely-circulated fact that a new car will lose a significant chunk of its value the moment that it’s driven off the dealership’s forecourt.
One way of getting around this problem is by turning to the used market. If you’re considering this course of action, however, then you might have been dissuaded by a few of the persistent myths that surround the used market.
Myth 1: used cars are junk
There’s a suspicion among many motorists (and consumers in general) that used products must be useless – otherwise, why would they be put up for sale? The truth, however, is that there are many reasons a car might be sold, ranging from the personal to the professional. The used market is often a great place to bag an amazing deal!
Myth 2: That you only have to pay cash
You can finance a used car purchase in just about any way that you would a new one. If you find that you’re expected to pay in cash, this is a red flag that the seller isn’t above board. Look for a reputable used car dealer that doesn’t impose this requirement – even if you ultimately end up paying in cash.
Myth 3: used cars aren’t safe
Most good used dealers will honour warrantees by the manufacturer, and some will even have a mechanic give the vehicle a once-over prior to sale. Like every other car on the road, used vehicles must pass their annual MOT test – which is how you can be confident they’re safe to drive.
Myth 4 Used cars have bad resale value
It’s true that if you buy a used car that’s nearing the end of its natural life, you can expect to recoup very little. But this being the case, you’ll have spent a lower amount in the first place. And most of the depreciation will already have been priced in. As we’ve already mentioned, new cars suffer from far more acute depreciation. Therefore, as a proportion of the price you originally spend, the resale value of a used car tends to beat out that of a new one.