It is always important to budget
your financial commitment before shopping for any car. You will need to
consider all your cost of owning a car. Things to consider for example are
vehicle insurance, petrol cost, parking cost, maintenance cost as well as taxes
for owning a car according to your local government. Especially if you are
buying an older car, maintenance cost may be significantly higher than you will
expect. You may pay peanuts for the car but end up spending a fortune on repair
bills.
Advantages Of Buying a Used Car
A car’s depreciates the most
during the first 3 Yrs of its life span. So effectively, by buying a used car
the yearly deprecation has been reduced. However, there are tons of things to
consider when shopping for a used car.
< 2 Yr old cars. – These cars
are great value for money as they are near new. Most are probably still covered
under dealership warranty so you don’t have to worry about major parts going
defective. If chosen carefully, it can be of better deal than most buying a
used car. Most cars of this age would still be in very good condition.
3 To 5 Yrs Cars – Most defective
parts (If Any) have been replaced by dealership warranty. Should not have any
problem with major parts. However it is around this time than little things in
the car starts to fail due to wear and tear.
5 To 10 Yrs Cars – More care need
to be taken when considering cars of this age. As the car is nearing its life
span, it is around this time that major problems with engine or gearbox starts
to develop. You should buffer more maintenance cost into consideration when
buying cars of this age. Prices are relatively cheap as compared to new cars. This
means you can get a better car (more power, bigger sized) for a fraction of
what you would pay for a new car.
>10 Yrs – Typically difficult
to tell the condition of the car. Given the long history of the car, it is usually
difficult to track history of car as it may have gone through many owners. Be
sure to pick a more popular model that has an abundance of 2nd parts
in your local scrap yard. New parts for these old models direct from
manufacturer will typically cost a lot. Fixing up your car with 2nd
parts will greatly reduce your maintenance cost.
However, buying a used car is
still a bit of a gamble - there is no guarantee that the car is accident-free,
has real mileage, and was properly maintained. There may be some hidden
problems like a worn out automatic transmission, or engine problems that may
not have been obvious when you test-drove the car. So, next you must ask
yourself: What is yor objective of buying a used car, is it due to a passion? Saving
money?
How do I eliminate the risk of
potential problems and is this actually possible to do? Read on to find out
more information.