Why choosing a second-hand car instead of a new one is a clever and cost-effective move
These days everyone is looking for ways to have more money left the week before payday. If there’s one expense we would all like to save on, it would probably be our car payment. With the current state of our economy fewer car shoppers are able to afford a brand new car. If you’re one of them, you’re definitely not alone!
In fact, we’re seeing a shift in the market with more consumers preferring pre-loved cars. Though ‘pre-loved’ might set off a few alarm bells for you, we’re about to tell you why choosing a pre-loved car will be one of the smartest moves you make.
Firstly, opting to buy a pre-loved car privately is an even smarter move. It’s no secret that car dealerships take a cut on every transaction and often have a preferred financing provider. That’s why a lot of people prefer to buy or sell cars privately, because you cut out these middlemen and end up saving more.
Talking about saving, one of the biggest advantages of buying a pre-loved car is that you won’t have to fork out as much for the purchase price. But regardless of whether you choose to buy a new or pre-loved car, you should always check your budget to see if you can afford the monthly installments. If you can’t pay off the car within 72 months, you probably can’t afford it. When looking at pre-loved cars, you can still apply for financing through RCS Car Finance, who now offers a safe and convenient solution for individuals looking to buy or sell a car privately.
Thirdly, a new car takes its biggest depreciation within the first two to three years. Once it leaves the showroom, a new car will lose about 25% of its retail value. By buying a pre-loved car, you’re letting someone else take that depreciation hit. That ‘someone else’ would also have already paid premium rates for extra features like leather seats, blind-spot detection or a sunroof. So you get a car with extra specs without having to spend more for these nice-to-haves. Another win!
You’ll also be paying less insurance on a used car than on a new one, because this is largely based on the value of the car. This is especially helpful when you’re in your twenties and paying a lot for insurance due to your age. We can think of a million better ways to spend those Randelas!
The biggest concern when buying a pre-loved car is probably its condition. RCS Car Finance ensures that sellers’ cars are in good nick – they undergo a rigorous technical inspection – so you won’t be compromising on quality. Plus, with today’s technology, cars tend to last much longer. But for extra peace of mind you can extend the warranty or service plan to cover your new ride, also with the help of RCS’s dedicated team.
The final verdict: Choosing a pre-loved car will leave you with a quality set of wheels and more money in the bank. In fact, you could be driving off with a ‘better’ car than you would otherwise be able to afford.
Are you currently looking to buy a car? Do you want RCS to help you find, check and finance your car?
RCS is a registered credit and authorised FSP. NCRCP38/FSP44481
Please note: Due to the COVID-19 lockdown it will not be possible for RCS Car Finance to assess and test a pre-loved car for you or deliver a vehicle. You will be able to start your RCS Car Finance application and see how much finance you could qualify for, and the rest of the safe, easy process will take place at a later date.
This is a sponsored post