Tag Archives: discount

New car 40% cheaper?!

Before such an important decision as a purchase of a car, there are many questions that must be answered before taking the final step. One of the most important is: what kind of car to buy – new or used? If a year old car costs up to 40% less than a same new one, then quite possibly it would be wise to make a choice in favor of second-hand vehicle.

Budget and price category does not directly point to a specific car segment as it is possible to find a brand new lower class car and a bit used but higher class car (hence, way more better equipped) that cost exactly the same. In order to make the most appropriate decision that fits your needs the best, it’s worth to consider all the arguments for and against.graph showing cars value is going down

The price. Year old premium car with an identical list of extras can cost up to 30% less than a brand new car of the same segment. In addition, for the same amount you can buy a new middle class car. However a slightly used premium class car, most likely, will be a much better tool to confirm your status in society. Moreover, the comfort provided by the premium car segment will dramatically improve the quality of your everyday life.

Car appearance. Given the fact that car model generations change on average every 7-8 years, but the so-called facelift models are updated every 3-4 years, a used car buyer will be an owner of a timely, still in a production car model for a relatively long period of time.

Insurance. Given that a car insurance premium is calculated on the basis of the cars value, then the cost of insurance for slightly used car is about 40% lower. Hence, choosing a used car over a new one generates significant financial savings any person or business will manage to appreciate.

Warranty. One of the main advantages of a new car is warranty. But many buyers oversee a fact that also slightly used cars have an existing warranty if the warranty conditions are not violated. In addition, if you decide on purchasing a second hand car from a reputable auto dealer, to guarantee the quality of product (including it’s perfect appearance), it is possible to get an extra warranty from the seller, to provide an additional guarantee.

Depreciation in value. There is a common belief – as soon as you drive out of a dealership with a brand new vehicle, it loses half of its market value. This assumption is partially correct as the cars value decreases dramatically in the first three years. The highest drop in the price is exactly in the first year.

dashboard showing low mileage

Mileage. Slightly used cars have a low-mileage. Very often these cars have not reached the mark of 3500 miles. Cars like these are considered as practically new ones. However, the buyer can be calm when receives an extra assurance from the seller that it has checked and verified the mileage displayed on the odometer.

Financing. Both financial and operative leasings are available to slightly used cars, just like brand new ones. Of course, if you have enough funds, you can pay for the vehicle in cash or wire transfer, or any other method accepted by the seller.

The residual value. Value of a used car decreases at a much slower pace than a value of a brand new one. There are some occasions when a used vehicle is sold at the same price as it was purchased before. The residual value is not affected by the manufacturer’s selling price, but the demand for a particular make and model in the market.