Used cars are growing in popularity as more people are becoming less inclined to get into big loans for finance agreements and lose a huge portion of the value of a car in the first few months. Having said that, there are some amazing pros for getting a new car that can sometimes outweigh a used car. But that isn’t what we are debating today. A used car can be a better financial option for some people who can only afford a lower monthly payment or would prefer to buy a car outright. But is it value for money or is it a financial burden? I thought I would share with you some of the costs you may incur.
The cost of maintaining a used car
There are some ongoing costs that will need to be spent when it comes to the ownership of a used car. First of all, there are the yearly services, which isn’t a cost you escape with a new car either. This does need to be maintained when it comes to owning a used car. A service will highlight any wear and tear items that could need replacing as well as ensuring any fluid levels are where they should be. Alongside this, a used car may be subject to a yearly MOT. This is a legal requirement for driving on the road, but thankfully it is made simple as you can now book an MOT online. Both servicing and MOT’s ensure that your car is reliable and roadworthy. It is definitely a cost that you will need to incur, but keeping these things up to date could help you avoid any other larger costs for some wear and tear items in your engine.
What happens when the warranty expires?
Many used cars will have had their manufacturer warranty expire, which means that you, as the owner, are subject to any parts or replacements that need to be paid for. However, a used car can have an extended warranty or a purchased warranty. However, always check the fine print to ensure you know exactly what is and what isn’t covered.
Is it cheaper on a finance agreement?
When it comes to financing a used car often people choose to do finance arrangements. However, because the car is cheaper to buy on paper in regards to the cost, it might end up working out more expensive in the long run than a new car. Many manufacturers offer lower interest charges on brand new cars. However, it is always worth checking the total amount payable when taking on any finance agreement.
Is cash really king when it comes to purchasing a used car?
Many people choose to pay for a used car outright, and while that may work out for you, it is always worth remembering that a car, no matter whether new or used, is a depreciating asset. Sometimes it’s best to work out both sides of cost over the period you plan to own it. Sometimes cash works out better, sometimes financing does.
Overall, buying a used car can be a very cost effective way of motoring. As long as you take good care of the vehicle and have the necessary checks, it should work out as good value for money.