What is the first car that new drivers purchase, assuming that you didn’t receive a vehicle from your parents? The make is irrelevant, but the model is likely to be second-hand. Young drivers are managing a tight budget, therefore, they prefer keeping expenses under control. While they are often in an early professional position in their career – some of them are still going to college – the budget for the purchase of the vehicle is kept to a minimum. Indeed, the price of the car is often the first criteria that young drivers need to check to make their choices. Only then can they consider the make and design. However, this leaves an important issue unaddressed. Can you save money in the long-term when you choose to use a second-hand car or does the vehicle generate high costs that could have been avoided with a brand new car? In fact, you’d be surprised to know that, the only way to grab yourself a bargain with a used vehicle is to have extended knowledge of the relevant mechanics, market, and legal covers.
Is a second-hand car saving you money?
Why it’s best to go with a used car
For young drivers who are just starting with their first job, or even still finishing their studies, it can be difficult to gather the money necessary to purchase a new car on their own. There are, naturally, bank loans that are available for all. But let’s be honest, what are the chances that you get a decent loan agreement when you haven’t even had the time to build a credit history? Besides, as most young professionals are busy repaying their student loans, they’ll likely pass on applying for a further loan. Ultimately, everyone will own, on average, 13 cars throughout their lifetime, with each car costing an average of $30,000, you will end up spending almost $400,000 on cars only. Consequently, buying cheaper cars can let you save a lot of money in the long term, and maybe can facilitate other essential expenses, such as becoming a homeowner for instance. That’s where a second-hand car comes in. Indeed, you can find excellent used cars at a bargain price, after the depreciation hit. Indeed, a brand new car loses 20% of its value the moment you purchase it. This means that, even if you take good care of it, you’ll never be able to sell at a profit. For used vehicles, the depreciation has already occurred, meaning that you can buy a cheaper car, and still resell it at a reasonable price. Additionally, you’ll find the insurance costs to be advantageous when you’re looking to cover a second-hand vehicle compared to a new model. And this goes without mentioning the fact that you might feel less nervous, as a young driver, to own a car that might have a few signs of wear and tear.
Know your car mechanics
Admittedly, while a used car might appear cheaper at first, it’s essential to make sure that you’re buying a reliable and sturdy vehicle. Brand new cars are under the manufacturer’s warranty for any mechanical fault. But, when it comes to second-hand vehicles, it’s a different kettle of fish. It’s your responsibility, as a future buyer, to check the vehicle carefully and thoroughly. Start by reviewing the shape of the car, as this can help you to identify signs of sagging. Under the hood, you will have to check for rust, hoses, belts, corrosion, and leaks to make sure you’re choosing a vehicle with a good engine.
Are you getting coned?
If you’re using a private buyer instead of a professional dealer, you might find it difficult to check for the service history, as some car owners might service their cars at home. Unless you have a confident knowledge of cars, you should always choose vehicles that have a full-service history, so that you can find out about the car’s issues and maintenance status. Additionally, it’s important to stay away from private buyers who can’t provide a full-service history if you’re still an inexperienced driver. Indeed, the tales of young drivers coned by private buyers in purchasing a vehicle that has a hidden history are numerous. From undisclosed car accidents to stolen vehicles, there are a lot of risks.
Get your car covered
There is no car purchase without discussing the merit of car insurance. For used cars, the costs of insurance tend to be low, making it easier to get a car cover without breaking the bank, especially as some car insurers will boost fees for young drivers. Additionally, when you buy a vehicle that has had a previous owner, you might want to look for some mechanical reliability to make sure that you don’t have to deal with unexpected repair bills. Have a look at Carchex’s best-used car warranty companies to help extend the life of your vehicle. Indeed, old cars will need to get engine, transmission, and drive axle components repaired as time passes, even if you take good care of them. Consequently, a warranty cover can make sure that your repair costs won’t ruin you.
Used car or using a car?
What if you just need a vehicle for a limited time, such as driving to work on an out-of-town project for a couple of weeks? If this is the case, you might not need to look for a car to purchase, but only a car that you can borrow. You can refer to car renting agencies to define the best option for your needs. Most agencies offer a discount to customers who need to hire a vehicle for consecutive days or weeks. These agencies will also suggest taking an additional cover to the cost of the rental. Or you might choose to use the car of a friend or a relative, instead of buying a used car. You can find temporary car insurance deals to cover you while you use someone else’s car. This temporary coverage is necessary to protect both your driving license and the car owner in case of accidents.
Ultimately, there is more than one possible option when it comes to buying a car. From choosing trusted dealers and a car warranty when you select a used car to organizing a meeting with a private seller to review the vehicle, you need to pick the option that offers you the most valuable and reliable solution. Otherwise, your used car might be the ruin of you.
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