These days, consumers don’t have to be wary of buying a used car from a dealership.
Now, especially with manufacturer run certified pre-owned programs, we can be more confident of driving away with a reliable and value for money used vehicle. And we can aim for cars that would otherwise be well out of our budget. Not only that, but late-model used cars are now considered a safe and financially sensible buy.
Why buy a new car that depreciates immediately?
It’s a known fact that as soon as a new car hits the road it drops in value - the dollars and cents are trimmed off with the kilometres on the clock. With only 25,000 kilmetres at just 2-years old, the Honda Accord VTi will sell for around $10,000 less than the $32,490 it cost to buy new. The Holden Commodore SS depreciates just as quickly, with the same age and kilometres slicing $14,000 off its original price.
Why not secure a superior or larger car?
Upgrade in size and prestige
Opting for a car at only one or two years old still has its sheen and looks attractive, and often comes with the same features of a new vehicle. So, if you’re thinking of shelling out $35,000 for a new Toyota Camry Atara S, why not step up your look instead? A two-year-old Lexus IS250, Audi A4 or BMW 320i could be yours for around the same price or less.
And there’s no need to feel cramped. Take up more space, with a two-year-old Toyota Camry costing around $20,000, roughly the same as a new Toyota Corolla Ascent, and both cars boast impressive features. For the same price you could even be stretching out in Toyota’s biggest sedan, the Aurion, still a ‘toddler’ at just 3 years old. Pile family and friends into a four-year-old Honda Odyssey minivan, also roughly the price of the new, smaller Corolla.
Get the manufacturer’s seal of approval, with a Certified Pre-Owned car
These vehicles are at the half way mark between new and used, and attract a price that reflects this position. Manufacturers operate ‘certified pre-owned’ programs, which subject used cars to rigorous inspection and repair and offer confidence and peace of mind that’s backed up by warranty. Some clear advantages to buying your next car through a dealership rather than from a private seller.
So what are the catches?
It’s basically down to the Feature your after and arranging Finance
A used car is usually more costly to finance, but this should be weighed up against cheaper insurance and the benefits of upgrading to a larger or more prestigious model. Also, it’s probably not practical to lease a used car. New cars invariably come with up to the minute, sophisticated gadgets and sometimes additional safety features. However, as long as safety isn’t genuinely compromised, the extra thousands you spend for a new car could just be paying for the high tech touches and that coveted ‘new car smell’. At the end of the day it’s up to you to decide if it’s worth it.