If you’re one of the lucky ones who have been able to save up just enough money for the car of your dreams, then you have two options — buying a new and secondhand model. Just like you, many aspiring car owners have this idea that the newer the car, the better. Think about it — there’s nothing like cruising on major thoroughfares, while other vehicles admire your brand new Toyota or Volvo. The major downside is, it’s not necessarily practical. In fact, many more are likely opting for the secondhand option due to the ease of getting a used car loan in the Philippines, for example. Not to mention that many people may be having second thoughts spending millions on buying a new car in the midst of the pandemic.
With this information, it’s no wonder why future car owners are looking towards more practical options, such as a used car. On the surface, used vehicles are more budget-friendly. They’re cheaper than the latest models and they take less work to maintain because the previous owner likely took on this burden already. While these may be the top two obvious reasons for buying second hand cars, customers also don’t realize other advantages. In this guide, we’ll list them down and if you’re ever planning on purchasing a secondhand vehicle, you can use it to help you. Read on!
As mentioned before, a secondhand car is more cost-friendly because it’s cheaper that newer models. Whereas the latter may end up fetching from 1.5 million to 2 million pesos, a secondhand car is usually priced lower than that. You may even buy older models half the price of the new one.
This is the better choice for you to make, especially if you’ve already been able to save up and you have a car in mind. Or, if you’re still in the motions of racking up your savings just enough for you to afford a used vehicle, getting the money is much easier to accomplish because it won’t take too much of your time. You can simply allot a certain portion of your savings specifically geared towards purchasing this type of car.
Slow Depreciation Rate
All cars depreciate. Simple as that. No matter how good you think investing in a car is, there’s still this detail hidden in the subtext that tells you your car loses value even only after a year of purchasing it.
You’re probably thinking: “But I’m planning on buying a new Maserati. I doubt that a car of this line and caliber will depreciate like you said it would.” Sorry to those looking to invest on a brand new, high-performance Maserati vehicle, but this is actually one of the top 10 cars that are prone to crashing, or depreciation. Did you know that within 5 years of purchasing any car from this manufacturer, the car will lose an estimated 69% off its value?
Alarming isn’t it? This is why people want to opt for second hand cars because they don’t depreciate as fast as the new ones do. It’s all about perspective. With a new car, you’ll end up losing 15% of its value just in the first year. For a brand new car, however, this figure will relatively be lower and it won’t even be of any significance in the long run because of the slow depreciation rate.
Find A Car That You Want
This isn’t to say that you won’t find your dream Maserati when purchasing a secondhand car. Be it the crossover SUV Levante or the sports-tuned Quattroporte, you’ll still have a chance to own one.
There are tons of dealerships that specialize in different makes and models of your favorite vehicle. All you need to do is open your computer and phone, and find several listings of your favorite car. Needless to say, the best part is that you won’t have to pay a full price.
If you currently don’t have the funds now, you can ask assistance from a financing company to help you out. There’s bound to be one who’s willing to help you finance that dream luxury Maserati, Ferrari, Volvo, or the everyday Honda sedan.
When you’re planning to buy the car from the dealership, it’s less hassle-free for you because the dealership will likely take care of most of the paperwork — registration, taxes, licensing, financing, and the like. All you need to do is to sign a few documents and ensure all of these are ready for submission on the day you purchase the car.
More than just that, if you find a reputable financing company, they can also help you out with getting all these papers in order. The best ones usually take only one-day approval, giving you an earlier head start in planning your dream used car.
Availing of a used car loan in the Philippines is one of the best ways to help you finance your dream car purchase. When it comes to the newness of the car, on the other hand, a brand new car trumps new ones because of its perceived affordability, practicality, and hassle-free transaction. Keep all of these in mind whenever you’re planning to make one of the biggest investment decisions in your life.