With the price of second-hand motors sky-rocketing this year, how much of an investment could a used car be?
- 19 Jan 2022
Are you worried about purchasing your next vehicle due to the shortage of new cars and the increasing price of used? Best4 Warranty has put together the pros and cons of investing in a used car.
Why has the price of used cars increased?
We don’t want to sound like a broken record, but we have to mention Covid-19. Dealers saw a rush of customers looking to buy used cars after the lockdowns causing quick stock turnover.
This time round, there is also a semiconductor shortage to factor in. This has resulted in a smaller supply of new cars, causing automotive customers to move towards used cars for their next purchase. It’s estimated that 8 million used cars are sold a year.
What are the negatives of buying a used car?
There will always be pitfalls and risks to buying a used car rather than new.
- No personalisation to specifications: If you’re looking for a car to make your mark on, with custom colour and interiors, then a used vehicle will be unlikely to satisfy your needs.
- Less advanced technologies: Newer cars will have more advanced technology which can have huge benefits for fuel efficiency and safety.
- Uncertainty of car’s history: whether it be an older woman who only used it to pop to her local, or a wannabe teenage racer-boy, there can be no knowing who previously used your vehicle or if they are telling the truth.
- More miles: Prepare for more diligent maintenance routines to offset higher levels of wear and tear.
Why SHOULD you buy a used car?
- Prices are far lower: It’s sounds obvious, especially in the current market, but used cars are cheaper to buy than brand new ones. Once a new car leaves the forecourt it decreases in value by 20% on average.
- Save money on car tax: Brand new cars feature a first-year tax rate based on their CO2 emissions which can be a significant cost. Buying an efficient car that was registered before April 2017 could save you up to £465 per year compared to new equivalents.
- Nicer car for your budget: Buying used gives you the opportunity for a more exciting and upmarket car for the same price as a basic-level new car.
- No waiting list: When buying a new car, you may have to wait in a ‘build queue’ for the manufacturer to build your vehicle. You could be waiting for months or even years if you’re thinking about a taking advantage of personalisation opportunities like specific colour schemes.
It is almost inevitable that if you purchase a used vehicle the components will fail. An extended car warranty UK is a way for you to pass the risk of your vehicle suddenly or unexpectedly suffering a mechanical or electrical failure to a covered component on to someone else.
It costs nothing to get a Best4 Warranty quote and you may be surprised how much we can help lessen the risk. So, what are you waiting for? Prepare for the unexpected with the nation's favourite warranty provider.