Articles

Post Office™ Articles

Buying A Used Car

Buying a used car has a number of upsides and downsides when compared to buying a new one, so it’s worth giving it some thought before you take the plunge.

Lets be optimistic and have a look at the upsides first.

One of the big advantages is that you shouldn’t be hit by that real kick in the teeth, new car depreciation. It’s a common known fact that as soon as a brand spanking new motor leaves the showroom, you can wipe a grand off straight away.

What you can do is always buy cars that are a few months old, still in mint condition, but because they are on their second owner and out of the showroom, they will not take the nosedive.

A used car also has a record. You can read its mileage, see how many previous owners there have been and by kicking the tyres, see what sort of life it has left. Of course, most people can only manage a cursory check and you might think it worthwhile, on an expensive car, to get a mechanic to give it the once over. It might have great tyres with plenty of tread, but the clutch might be about to fail. It can often take an expert to see what’s really under the paintwork.

Nowadays you can also check, by using a car database, that your car has not previously been a write off and welded together with another write-off. This service, although costly if you’re looking at quite a few cars, is highly recommended, because it also checks if its been stolen, or has outstanding finance. Having bought it does not protect you from someone asking for the car back.

And there are literally thousands of cars and deals out there. Set your heart on a particular make and model, and it’s likely you’ll find it. There’s still the chance to buy through a dealer network, a web-site, or broker, but also you can buy privately, or at an auction. There are also numerous ways to fund your purchase (cash, finance, or lease).

Lets consider the downsides now and if you buy a used car, you are still not out of depreciation territory of course. Cars can drop in value over 50% by their third year, so although some models might seem a great bargain, you’ll find that your asset is comparatively worthless when you decide to sell.

The spectre of the shunt job (two welded cars) has already been raised and this is a worry for most used car buyers, even when buying younger models. Dealers will be the best in offering guarantees, but the place where the best bargains are achieved, the auction houses, offer little recourse if you’ve bought a lemon.

A used car, especially one given a hard life, is also going to be a bit of a lottery when calculating driving costs. If it’s been driven by a sedate driver doing below the average yearly mileage, then things should be okay. But if it’s been driven by an aspiring Dakar rally driver who favours handbrake turns, swift acceleration and riding the clutch, you’re going to be in for some large bills.

Used cars, they offer a lot, just make sure you know what you’re getting into. Don’t let your heart rule your pocket.