Buying a car is an exciting time and more often than not, we opt for a second-hand vehicle, mainly for economic reasons. Of course, there are risks when buying a used car, plus there are numerous factors to be taken into account, which we delve into in this short article.
- Age – The range is from 1-20 years old and the older the car, the cheaper it should be, although this not always the case; some old cars have been restored and are very valuable. One thing you should consider is depreciation; for many motorists, buying a 2–3-year-old car and driving it for a year or two is the ideal situation, while others buy a used car with the intention of keeping it until it cannot be used any longer. If you drive a 12-month-old car for 1 year, you might lose 10-15% of its value when you sell the vehicle and this is the optimum trade off period if you don’t want to lose a lot of value.
- Condition – As you would expect, the condition of a used vehicle has a bearing on the price; the range starts with ‘immaculate condition’, which is next to new, then comes ‘very good condition’ (VGC), ‘good condition’, ‘average condition’ and finally, ‘poor condition’. If you take good care of a car while you are the owner, you should get a fair price when you sell.
- Service history – FSH stands for ‘full-service history’ whereby the owner can produce documentation to verify that the car has been serviced. Most buyers are looking for a car that has been well maintained and FSH cars fetch the best prices. A vehicle with no service history would not be one to consider, for obvious reasons. Check out My Motors, a leading garage for service and repairs at affordable prices.
- Finance – While some people pay cash, the majority take out a car loan, which might run from 2-5 years and the dealership typically offers competitive finance. There are many online lenders here in Australia, so you can use Google to find the best finance package with low interest. You can search online for used car dealerships, where you will get a fair warranty and we recommend taking your time before making up your mind.
- Suitability – There are quite a few styles out there; SUV, sports, 2+2, saloon, sedan, and hatchback, to name but a few and it is important to select a style that suits your needs. Click here for tips when buying an RV.
- Running costs – Running costs vary from model to model; generally speaking, the larger the engine, the more fuel it consumes. Rare cars mean costly parts, which is something else to consider. Insurance is another aspect, performance cars are more expensive to insure, while driver age and driving history can also play a role in insurance premiums.
Decide on a budget, start looking at cars and hopefully, the right vehicle will present itself and you will enjoy many years of trouble-free driving.
