You finally decided to purchase that car. Buying a car may be your next biggest purchase. If you prove that it is a necessity, you have to secure a car right away. The next question would be: should you consider a used car? Most Singaporeans think that this is an unwise decision but for others, used cars hold more possibilities.
There is nothing wrong if you consider new cars but if you are tightly bounded by budget, this is the time that you should consider used cars. Before anything else, you have to look beyond the picture of a rusty clunker and think of the value and possibilities. To help you decide, here are the reasons why you should consider used cars:
- Low Cost: As mentioned earlier, used cars are way cheaper than new ones. In fact, used cars are twice or thrice cheaper than new ones. If you have limited or tight budget but still want to have the luxury of a car, you should pursue used ones.
- Reduced Insurance Cost: All cars should have insurance but in the case of used cars, it is lesser. New cars will demand higher insurance costs depending on the bank and the scheme. In the case of used cars, you have the option to reduce the coverage and just consider theft and collision insurance.
- Minimized Depreciation: Not all people know this but for the first year of the new car, depreciation will strike. In some cases, the depreciation is at 10%. Depreciation refers to the loss of value once the vehicle is used. If you consider used cars, you do not need to worry about the depreciation.
- Reliability: Many Singaporeans think that second-hand cars are less reliable than new ones. You should ignore this. You have to think that cars these days are indeed more reliable with cutting edge engines not to mention improved designs. You will be surprised to find a car that still looks better and performs right. The secret here is proper maintenance. With proper maintenance, your car can last up to eight years. Wear and tear is out of the question.
The good thing is that when you consider used cars, there are various choices available here in Singapore. It will help you decide if you know some experiences of used-car buyers. You have to do your research when it comes to car dealers as well. To find the best deals, you need to scour the market if there is a need to.