The Costs You Second Hand Dealer Might Not Have Mentioned

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With the average vehicle now costing the same as a deposit on a house, there are few people out there lucky enough to buy upfront. Instead, we do what we can to spread the cost or lessen it altogether. In some cases, we take out loans on the price and pay them back at achievable monthly rates. Others cut costs further by deciding to shop second hand.

There are plenty of reputable second hand dealers who can ensure even an old vehicle will serve your purposes. Buying through such dealerships reassures you about the condition and registration of the cars in question. Many would argue this is a no-brainer when it comes to choosing the new wheels in your life.

But, before you jump on the pre-used bandwagon, consider whether that second-hand car will save you as much as you think. While there’s no denying lower upfront costs, these options could actually set you back more on a monthly basis. And, with most of living from paycheck to paycheck, that could be bad news indeed. To prove the point, let’s look at those expenses and what they mean for this option.

Fuel guzzling

 

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New vehicles are often built with fuel economy in mind. Not only does this help the planet, but it also saves you wallet. While it isn’t always the case, it’s fair to say that most new vehicles cost less when it comes to filling the tank. Many old models will guzzle your fuel the moment you fill up. At least, that’s how it’ll feel if you’re used to modern options.

Need for warranty

When buying a vehicle new, you’ll often find that you’re covered by the manufacturer’s warranty. While these vary in duration and coverage, you’ll often find quite a good deal this way. For instance, Hyundai offers a 10-year warranty which covers 100,000-miles. If you buy that same car second hand, though, you’ll have no choice but to opt for a Hyundai extended warranty plan instead. There are benefits to this option, such as the freedom of coverage at any garage, not just a Hyundai one. But, it’s still worth noting that this can get expensive if money-saving is your aim.

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Higher insurance premiums

Take note, too, that your insurance premiums are sure to be a fair bit higher on a second-hand option. It’s no surprise, given that your car is more liable to give up the ghost or malfunction. But, insurance on a new vehicle is expensive enough. This could well be the insurance straw which breaks your car budget’s back.

So, what does this mean?

In truth, even the above expenses don’t mean second hand should be off the cards. All you need to do is consider the above costs when you’re buying. That way, you can make the most financially savvy decision for your situation. With car prices what they are now, there’s every chance this will still be your best option. But, staying informed is your best way to bagging a bargain.

 

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